Tether Mints $2B USDT, Another Crypto Market Rally Incoming?
Highlights
- $2 billion USDT was minted by Tether in two transactions done on the Ethereum blockchain.
- Tokens are not issued yet, but ready to be activated by the future demand on the market.
- Tether plans a U.S.-specific stablecoin after Genius Act passed.
Tether has minted $2 billion worth of USDT, raising fresh speculation about a potential market rally. The two Ethereum-based transactions were quickly clarified by Tether’s CTO Paolo Ardoino.
Tether’s $2B USDT Mint Suggests Liquidity Preparation
Tether minted the USDT in two separate transactions. Each transaction totaled $1,000,999,999 and occurred two minutes apart. The information was published by Whale Alert, a blockchain tracking platform, on X.
The transactions were recorded on the Ethereum network and confirmed as originating from the Tether Treasury. This mint follows the $3 billion USDT minted by Tether seven days ago.
Following the tweet, Tether CTO Paolo Ardoino issued a clarification in an X post. He said the USDT were minted as inventory and are not in circulation yet.
According to Ardoino, the transactions were authorized but not issued. This means the USDT will serve as inventory for future issuance.
The tokens may later be deployed to exchanges or institutions based on demand. They can also be used for chain swaps between blockchains. This is standard practice for Tether, especially during periods of rising stablecoin demand.
Tether often pre-mints tokens to meet future liquidity needs quickly. The mints are not currently available in the markets but pre-minting USDT is usually an indication of meeting future expectations, from exchanges or crypto whales. This is what has happened in previous market cycles also.
USDT is a common trading collateral and entry liquidity. Exchanges can also request for USDT in case they anticipate inflows from users or a sharp rise in trading volumes.
Mint Suggests A Possible Boom in the Cryptocurrency Market
Although the newly minted tokens are still unutilized, history indicates that inventory USDT usually moves within days. The mint is happening at a time when the broader crypto market is on an uptrend.
Bitcoin is trading at above $110,000 in the current market whereas Ethereum is gaining momentum. With $2 billion now sitting in treasury, markets may be bracing for a renewed upward momentum. When that will happen depends on how fast the minted USDT is activated.
Earlier, Tether CEO confirmed that the stablecoin issuer plans to launch a U.S.-specific stablecoin. The move follows the signing of the Genius Act into law.
- Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- Breaking: U.S. Government Shuts Down After Congress Fails to Pass Funding Bill
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
