Tether and Circle mint $3.75B in stablecoins; Tron becomes second-largest USDT network
Tether and Circle minted a combined $3.75 billion in stablecoins this week, led by Tether’s recent 1 billion USDT mint on the Tron network. Tronscan records show the 1 billion USDT issuance occurred around six hours before publication. Tether’s transparency page reports $81.485 billion authorized USDT on Tron with $81.179 billion in net circulation, making Tron the second-largest USDT network after Ethereum. Overall Tether’s total authorized USDT supply stands near $102.7 billion (net circulation ~$100.88B). Solana and Aptos follow as smaller USDT-hosting networks. Market data (CoinGecko) lists USDT market cap at about $186.97 billion and USDC at roughly $74.85 billion. Circle’s USDC has outpaced USDT in market-cap growth in 2024–2025—USDC rose ~77% in 2024 and ~73% in 2025, while USDT grew ~50% (2024) and ~36% (2025)—a trend attributed to U.S. regulatory developments and institutional adoption, aided by the GENIUS Act and Circle’s regulated U.S. status and NYSE listing. Historical large-scale minting (e.g., a cumulative $15B during the 10/11 market crash) is noted as part of the expanding stablecoin ecosystem. Key trading implications: sizable minting increases stablecoin liquidity and can mute volatility or fund on-ramps into risk assets; regulatory positioning (US-regulated USDC vs. Tether’s El Salvador registration) continues to influence institutional preference.
Neutral
Large-scale minting of stablecoins by Tether and Circle increases on-chain liquidity and provides more capital that can be routed into exchanges, DeFi, or crypto markets — a factor that can reduce short-term volatility and support risk-asset buying. The $3.75B this week (including 1B USDT on Tron) is notable but not unprecedented; past events (e.g., $15B minted during the 10/11 crash) show issuers deploy large issuances to meet on-ramp demand and stabilize markets. The neutral classification reflects offsetting effects: added liquidity is bullish because it can fuel asset purchases, but mass minting without clear demand can raise concerns about dilution, reserve backing, or regulatory scrutiny, which are bearish factors for sentiment. Additionally, USDC’s regulatory positioning and faster market-cap growth attract institutional flows long-term, possibly shifting stablecoin market share gradually toward regulated issuers. Short-term traders should watch exchange inflows, stablecoin-to-fiat conversions, and spot/derivatives funding rates for immediate impact; long-term, the trend favors platforms and assets benefiting from increased institutional stablecoin usage and regulatory clarity.