Tether mints $1 billion USDT on Ethereum amid ETF anticipation News ▸ US ▸ Ethereum · Tether ▸ Stablecoins
Tether mints $1 billion USDT on Ethereum amid ETF anticipation
Market observers said this substantial minting activity would be used to provide liquidity for the market.
1 min read
Updated: May. 21, 2024 at 6:11 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Stablecoin issuer Tether minted $1 billion USDT tokens on the Ethereum blockchain, capitalizing on a market upswing driven by hopes that the US Securities and Exchange Commission (SEC) might approve a spot ETH ETF for trading this week.
Whale Alert first reported the minting, which was later confirmed by Tether CEO Paolo Ardoino, who wrote:
“PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
Inventory replenish
Market analysts suggested that Tether’s new minting is a strategic move ahead of a potential market rally triggered by an ETH ETF approval. Ivan Sherbakov, CEO of Cryptorobotics, said this minting “will be used as liquidity to pump the market ahead of ETF news.”
This analysis aligns with data showing a correlation between the increasing supply of USDT and a broader upward movement in the crypto market, leading to higher volumes and a more dynamic environment for digital assets.
Usually, Tether’s inventory replenishment involves creating new USDT tokens in anticipation of heightened customer demand. These tokens, held in Tether’s treasury, are classified as “authorized but not issued,” meaning they are not yet in circulation or included in USDT’s current total market cap.
According to Tether’s Transparency page, there were $87.8 million worth of such USDT on Ethereum as of May 21. Over the past year, Tether’s market cap has grown significantly, surpassing $110 billion and controlling around 70% of the market, according to CryptoSlate’s data.
This growth can be attributed to several factors, including the successful launch of spot Bitcoin ETFs in the US. Moreover, Tether has seen varying degrees of success in its other endeavors, which include diversifying its operations beyond its flagship USDT stablecoin product into other sectors like Bitcoin mining.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Bitcoin
$97,865.55
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.