Copy link
Increase text size
Decrease text size
Link copied

Tether Approves $1 Billion USDT Boost for Tron Network's Liquidity

Tether authorizes $1 billion USDT for Tron network liquidity while USDC market cap falls in 2023.

Wed, 20 Sep 2023, 10:28 am UTC

Recent blockchain surveillance reveals a significant move in the cryptocurrency landscape – Tether’s Treasury authorized a $1 billion USDT to enhance liquidity for the Tron network. This news, first made public on the platform X (previously known as Twitter), quickly received comments from Tether's Chief Technical Officer, Paolo Ardoino.

Ardoino clarified the situation, mentioning that this was just an authorization, not an immediate issuance. He further explained that these funds are reserved to accommodate future issuance requests and to facilitate chain swaps within the Tron network.

For those unfamiliar with Tether's inner workings, their official FAQ page sheds light on the concept of “authorized but not issued” USDT. By adopting this strategy, Tether can limit how often their signers need to unlock their authorization private keys, which in turn minimizes their vulnerability to potential security breaches. Holding such authorized USDT in the treasury equips Tether with the ability to release USDT instantly when they get customer funds, all the while ensuring that they maintain complete backing of their reserves.

2023 has been a remarkable year for USDT tokens on the Tron blockchain, setting new records. The total USDT in circulation within this network is an impressive $42.8 billion, outpacing the Ethereum blockchain's approximate $39 billion USDT.

It's not the first time Tether's actions have caught attention. A similar authorization for $1 billion USDT was noted earlier this year, in June, aimed at backing Ethereum chain-swaps.

Tether’s standing in the market is undeniably strong. In 2023 alone, it surpassed a market capitalization of $83 billion. Additionally, since the start of the year, it has introduced approximately $16 billion in USDT. Among the stablecoins tied to the US Dollar, USDT remains at the forefront in terms of market capitalization.

Meanwhile, Circle’s USDC stablecoin has experienced a decline in its market capitalization, falling from $50 billion at the year’s onset to its current $26 billion. This significant drop has been attributed in part to the collapse of Silicon Valley Bank (SVB) in March 2023, with Circle having had a significant $3.3 billion invested in the institution.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

Back to top
Copyright ⓒ TokenPost. All Rights Reserved.