Tether issued another 1 billion USDT on Dec 25, bringing the market cap of this stablecoin to exceed $91 billion for the first time, up nearly 38% in just one year. Previously, in October and November, Tether also put an additional 5 billion USDT into circulation, contributing to the crypto market’s strong recovery.
In addition to setting a new high of market cap, Tether also created a surplus fund with a value of more than $4 billion, which functions as a buffer to ensure USDT stability. This fund is a part of profits coming from Tether’s investment in US Treasury bonds. The company also allocates a part of its profits to invest in Bitcoin and gold, with values as of September reaching $1.6 billion and $3.1 billion, respectively.
In 2023, the company will also initiate and invest in many initiatives to help expand the Web3 ecosystem, including:
– Holepunch / Keet: decentralized protocol that allows the deployment of P2P applications, eliminating dependence on third parties.
– Synonym: develop products serving the Bitcoin ecosystem, popularizing Web3 functions to the masses.
– Nothern Data: a Bitcoin mining operator which received more than $1 billion from Tether in 2023.
On the legal front, Tether has in recent months increased cooperation with US government agencies to prevent criminal activities, resulting in the freezing of 161 wallet addresses on OFAC’s sanctions list and more than 435 million USDT.