Tether Mints $2B USDT on Ethereum, Largest Since Dec 2024
Tether USDT minted $2 billion on Ethereum in a single transaction, the largest inventory replenishment since December 2024. According to CEO Paolo Ardoino, this mint follows Binance’s cross-chain swap of 2B USDT from Tron to Ethereum, with no corresponding burns recorded on Tron yet. Tether classifies these funds as “authorized but not issued,” building supply for future demand rather than immediate circulation. Historical data show that the last $2B mint coincided with a Bitcoin pullback from its $100,000 milestone, followed by an 8% recovery within 11 days. With Bitcoin trading around $109K and the US Federal Reserve set to meet on September 17, traders may view this stablecoin issuance as a bullish liquidity signal ahead of potential rate cuts. The mint highlights Ethereum’s role in stablecoin supply and could underpin increased market activity as liquidity is poised for deployment.
Bullish
Tether’s $2B USDT mint on Ethereum expands stablecoin supply and primes markets with additional liquidity. Historically, similar large inventory replenishments have coincided with Bitcoin pullbacks followed by significant recoveries—an 8% gain within 11 days after the last $2B mint in December 2024. The timing ahead of the Fed’s September 17 meeting, where rate cuts are anticipated, further supports a bullish outlook. Increased USDT availability on Ethereum enables traders to swiftly deploy capital during downturns, potentially driving buying pressure in crypto markets. While no immediate token burns were recorded on Tron, the replenishment signals Tether’s preparedness for surging demand, reinforcing bullish sentiment among traders.