Tether has recently authorized the issuance of 1 billion USDT in order to support the token exchange on various blockchains.
This is the second tranche for such a large amount, with the first one released in April. According to CTO Paolo Ardoino, Tether helps “third parties” such as exchanges and hedge funds balance the liquidity of USDT across different networks.
He has clarified that if said organizations are in a situation where most of the USDT is found on one blockchain but withdrawals must happen on another, a cross-chain swap would be necessary.
Issued stablecoins are held in the Tether treasury under a “authorized but not issued” status and don’t add to the overall capitalization.
Indeed, it was confirmed by said CTO in May 2023 that they are looking into new business opportunities because of their high profitability.
This shift of profitability was substantiated in early June, with a record-breaking total market value of USDT reaching 83.4 billion.