According to Cointelegraph: On Christmas Day, Tether Treasury minted one billion USDT, dubbed "authorized but not issued," eliciting mixed reactions from the crypto community. This move was revealed through X (formerly Twitter) by the blockchain tracking platform, Whale Alert.
Tether, operator of the world's largest stablecoin, USDT, once again finds itself in a position of explaining its operations. CEO Paolo Ardoino confirmed the transaction, stating the minted USDT was an "inventory replenish" on the Ethereum blockchain.
This stock replenishing process, commonly seen in traditional finance, ensures that supply meets demand without excess inventory. In Tether's context, these freshly minted tokens are kept aside in the treasury as "authorized but not issued" USDT. Despite their creation, these tokens do not contribute to the total USDT market capitalization since they aren't introduced into circulation.
Tether's Transparency page shows that as of December 26, 2023, the value of "authorized but not issued" USDT on Ethereum stands at $925 Million.