Tether minted 7 billion USDT in 3 months and implemented a wallet freeze policy

This article is brief:

• Tether has minted 7 billion USDT in the last 3 months, significantly increasing its supply to over 90 billion tokens.

• The increase in USDT supply indicates market confidence and growing demand for stablecoins among traders.

• At the same time, stablecoin issuers introduced a new voluntary wallet freeze policy to prevent potential abuse.

Tether, the issuer of the USDT stablecoin, has minted 7 billion USDT in the last three months, bringing the total supply to over 90 billion. The increase in USDT circulation coincides with Tether’s recent crackdown on the illegal use of its stablecoin.

As of press time, USDT has a market capitalization of $90.6 billion. This marks a significant increase of 9%, cementing USDT’s position as one of the fastest-growing stablecoins this year.

What does the increase in USDT supply mean

Observers believe that the significant increase in the supply of USDT reflects improved market conditions and increased confidence among traders.

USDT is the largest dollar-pegged stablecoin in the market and has become an important channel for cryptocurrency trading activity.

On-chain data shows that it is one of the most used digital assets, with nearly $30 billion in trading volume over the past day.

Tether’s USDT year-to-date market capitalization. Source: Tradingview

The increase in supply is also a signal of increased trading activity for new market entrants and existing participants.

ACCORDING TO TRON DAO, “ABOUT 80% OF ACTIVE STABLECOIN ADDRESSES USE USDT EVERY WEEK,”

In addition to this, the increase in the supply of USDT has traditionally corresponded to a price spike in the entire cryptocurrency market, affecting the price of BTC and altcoins. The recent trend comes at a time when flagship digital assets such as BTC and ETH Square have risen to new yearly highs on market optimism that spot BTC ETFs could be approved.

Tether Launches New Wallet Freeze Policy

Tether has also started cracking down on the illegal use of its stablecoins by introducing a new voluntary wallet freeze policy. Launched on December 1, it allows stablecoin issuers to voluntarily freeze wallets associated with individuals on the U.S. Office of Foreign Assets Control (OFAC) list of Specially Designated Nationals (SDN).

CEO Paolo Ardoino described the move as a proactive measure aimed at preventing potential misuse of USDT. He underscored Tether’s commitment to freezing existing and new addresses on the SDN list.

Ardoino emphasized that this move is in line with Tether’s commitment to maintaining high security standards. In addition, the company’s goal is to strengthen the active use of stablecoin technology and create a more secure ecosystem for all users.

“By implementing a voluntary wallet address freeze for new additions to the SDN list, as well as freezing previously added addresses, we will be able to further strengthen the active use of stablecoin technology and promote a more secure stablecoin ecosystem for all users,” Ardoino said. ”