Tether Mints 1 Billion USDT as Binance and Circle Team Up
Tether just minted $1 billion worth of USDT tokens, according to new on-chain data. The company has been minting heavily recently and reported record profits in the third quarter of 2024.
However, Binance and Circle announced a partnership today that could compete with Tether, marking a potential new major competitor for the company Stablecoin market share.
Tether mints large amounts of USDT
on the chain data The report on December 11 showed a large increase in USDT tokens. However, this is One of the world’s leading stablecoins. The tether is USDT minting volume has been unusually high recently2 billion on December 6 and 19 billion last month.
Overall, the company has been performing positively in the current bull market, continue to maintain a relatively dominant position in a wider context Stablecoin Market. The latest financial report shows that Profit hits record high in third quarter of 2024demand for USDT surged.
This success is also reflected in regulatory wins. Earlier this week, Abu Dhabi Global Market Approval of USDT as an acceptable virtual asset.
However, the company still faces some obstacles that may prompt minting of the tokens. Coinbase will delist Tether in the EU This December due to concerns about not complying with new regulations Mika regulations. TEDA has Take steps to reduce exposure to risks in Europe.
At the same time, competitors like Robinhood and Revolut are also considering new stablecoins Take advantage of Tether’s decline in EU markets. In the US, Ripple also gains regulation Greenlight launches RLUSD stablecoin.
Still, some social media rumors have linked this minting behavior to larger underlying issues with the company. According to reports, Binance and Circle announced a new partnership to use USDC to capture Tether’s market share. Circle’s USDC token is co-owned by Coinbase, marking an alliance between the two major exchanges that have long competed.
Kash Razzaghi, chief commercial officer at Circle, said: “Binance’s business has undergone a profound transformation, and over time, we agreed that it made sense to pair with one of the most trusted and regulated stablecoins in the world. ”
Still, this partnership is very new, with Tether minting unusually high amounts of USDT over the past month. If the company is preparing to launch new competition, it’s still in its early stages. Regardless, there is not enough clear information to speculate on Tether’s future trajectory.
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