Tether's USA₮ token supply jumped to 140.9 million tokens in April, a nearly 540% increase from the prior month, while reserves backing the stablecoin rose to $141.2 million, the company reported. The reserve figure stayed above the circulating supply, leaving a buffer of roughly $300,000.
Reserve cushion stays intact
Tether has long said its stablecoins are fully backed by reserves held in cash, cash equivalents, and short-term instruments. For April, the reserves exceeded the token supply by about 0.2%. The company publishes monthly updates for USA₮ as part of a broader transparency push that also covers its flagship USDT token.
The $141.2 million reserve figure includes holdings in U.S. Treasury bills and other liquid assets. Tether did not break down the composition for April, but previous reports showed a mix of cash and corporate debt. For a dollar-pegged token, reserves above supply provide confidence that holders can redeem tokens at par. A shortfall would raise doubts about the issuer's ability to honor redemptions.
Sharp supply expansion in April
The 540% supply growth means USA₮ went from roughly 22 million tokens to 140.9 million over the month. That pace far exceeds the growth of USDT, Tether's larger stablecoin, which has seen more modest increases in recent months. Tether did not explain what drove demand for USA₮ in April.
USA₮ is a separate token from USDT, though both are issued by Tether. USA₮ is primarily used on the Ethereum blockchain, while USDT exists on multiple networks. The supply jump could reflect new issuance for institutional clients or integration with a specific platform, but Tether has not disclosed details.
The company's next monthly report for May is expected in early June. Investors and regulators will be watching to see if the reserve cushion holds as supply continues to grow.
