Conor Grogan, a director at Coinbase, recently took to X to point out that on-chain data reveals that Alameda Research minted 39.55 billion USDT tokens.

This figure represents 47% of the current circulating supply of Tether.

Alameda Research’s Role in USDT Minting

In a recent revelation, Conor Grogan took to social media to share insights into the issuance of Tether (USDT). According to on-chain data, Alameda Research, a crypto investment firm, minted 39.55 billion USDT tokens. This figure represents a significant portion, accounting for 47% of the current circulating supply of Tether.

Onchain data shows that Alameda was responsible for minting $39.55B of USDT, a number that is 47% of Tether’s circulating supply today

A previous report by Protoss estimated the number at around $36.7B; I was able to update these figures with additional wallets I found pic.twitter.com/fYBvGAYlFd

— Conor (@jconorgrogan) October 9, 2023

This revelation contradicts a previous estimate by Protos, which had pegged the number at approximately $36.7 billion. However, Grogan emphasized that he updated these figures by identifying additional wallets involved in USDT minting, providing a more accurate representation of Alameda’s contribution.

Furthermore, Grogan’s findings also raised questions about the redemption process for USDT. He highlighted the challenges in determining redemptions, pointing out that Tether appears to coordinate off-chain burns. Unlike other cryptocurrencies with deposit addresses, USDT redemptions involve direct transactions with Tether’s treasury, making it difficult to track accurately.

Additionally, Grogan speculated on the possibility of other market makers being involved in USDT redemptions. He mentioned that if all USDT redemptions from FTX were attributed to Alameda, they would account for 3.9 billion Tether, with a significant portion occurring during two days in May 2022 amid the Luna implosion.

Alameda Research Dominates USDT Supply

This revelation reinforces the findings from a 2021 report by Protos, which asserted that market makers Alameda Research and Cumberland Global played a pivotal role in introducing USDT into the crypto ecosystem. The report indicated that these market makers received at least $60.3 billion USDT, equivalent to around 55% of all outbound volume.

Alameda Research, spearheaded by crypto billionaire Sam Bankman-Fried, is a “multistage crypto and fintech investment firm.” SBF founded the firm in 2017. The company has gained prominence in the crypto industry through its association with the FTX exchange and participation in numerous funding rounds and investments.

The report also revealed that Tether sent approximately $36.7 billion in USDT to Alameda Research, with $31.7 billion received in the past year alone.