Issue of USDT coin
Since USDT is a stablecoin, it cannot be mined or mined by staking. How does the issue of coins take place in this case?
The emergence of new coins
At the beginning of 2022, almost 80 billion USDT digital dollars are in circulation, each of which is backed by a tangible asset. The creators of this project are not limited by the size of the emission of stablecoins. Since they are issued after the replenishment of assets, inflation and high volatility can not be feared. Therefore, the absence of restrictions is quite understandable.
The company releases new coins only after the corresponding amount in fiat currency is deposited. Moreover, it will be stored there until the user wants to withdraw his deposit. If this happens, the corresponding number of coins will be destroyed by the issuer.
Securing Existing Coins
According to Tether management, from the moment the project was created, the issue of the USDT coin is carried out if it is backed by assets. But users questioned the veracity of this claim. Three years ago, scandals flared up due to the fact that part of the funds providing the coin was credit.
However, as of 2021, all tokens in circulation are secured. This is confirmed by two sources:
- Deltec Bank, where Tether holds its assets. One of the leaders of the financial institution confirmed that there are enough reserves in the accounts to cover the entire issued mass of coins.
- Consulting company Moore Global. In the spring and summer of last year, this organization conducted a check on the availability of financial reserves backing the coin. According to the results of the audit, it was found that at that time Tether had assets in the amount of $67.7 billion, while the volume of coins in circulation was $62.2 billion.
Please note that not all assets are held in US currency. Most of them are represented by securities, the rest are tax bills, as well as deposits that can be received within 2-3 days.
USDT is the most popular digital dollar backed by real money. It is widely used by DeFi participants for various transactions and is a convenient way to settle on the blockchain