Tether has minted more than three billion USDT in the past two weeks, most recently minting one billion on the TRON blockchain on Dec 4. The USDT circulating supply is currently approximately 76 billion.
Tether has minted yet another $1 billion worth of the USDT stablecoin on the TRON blockchain, transaction information shows. The minting occurred on Dec 4, 2021, in a year that has already seen many billions of USDT created.
The minting comes as market enthusiasts continue to criticize Tether for its alleged lack of cash on hand to fully back its reserves. Reports show that only 2.9% of Tether’s USDT supply is backed by dollar reserves.
Tether minted three billion USDT in the first week of November, and the latest minting put its circulating supply at roughly 76 billion USDT. Tether’s supply is more than double the supply of USD Coin (USDC), which stands at about $39 billion.
Concerns over the backing of the USDT supply have gone back years and invited criticism from both the crypto community and lawmakers. Tether has stood firmly behind its decisions and has taken steps to become more transparent.
But with stablecoins becoming one of the most prominent concerns for lawmakers the world over, Tether will have to do a lot to win them over. Its reserves will be a key talking point when stablecoins become more regulated — and that is a matter of when, not if. It has already been fined $41 million by the CFTC.
One platform, Hindenburg Research, has also released a program called the Hindenburg Tether Bounty Program, which is offering rewards of up to $1 million for details on Tether’s backing.
Tether scrutiny still high despite attempts at transparency
Tether’s backing has been the subject of investor scrutiny for many years, and it is only in the past 12 months that it has made a more tangible effort to allay concerns. More recent months have seen the company take steps to ensure it does not cross regulators.
Nevertheless, the company’s actions have also caught the attention of lawmakers. U.S. Senate Banking Committee chairman Sherrod Brown sent a letter to Tether CEO Jean-Louis van der Velde just over a week ago. The chairman expects Tether to have responded by Dec 3 to concerns surrounding the stablecoin, though no follow-up details have emerged.
As a response to lawmakers’ reviews, Tether has said that it will make an effort to cooperate with global lawmakers to work on stablecoin-related concerns. This was unsurprising, given Tether’s position in the stablecoin market and its controversial history.
Other stablecoin projects have also begun to take transparency and accountability steps. USDC-issuer Circle said that it would take such steps in an announcement earlier this year. The SEC has also subpoenaed Circle, and the latter says they will cooperate fully on the matter.