Tether has minted $5 billion in USDT within the past week, highlighting new demand for digital assets following the latest US Federal Reserve interest rate cuts.
On September 19, Blockchain Analytics Platform Onchain Lens revealed that the Stablecoin publisher had created an additional $1 billion token for Ethereum.
Sponsored Sponsors
Tether expands USDT supply by $5 billion a week
This was added to the $4 billion created before the Federal Open Market Committee (FOMC) meeting on September 17th.
At that meeting, Federal Reserve Chair Jerome Powell announced the first cut in 2025, a 0.25 percentage point cut in the benchmark rate, suggesting further easing would continue.
This move to reduce borrowing costs is often interpreted as a potential catalyst for risky assets, including cryptocurrencies.
Market experts note that stubcoins like USDT usually benefit in such environments, as they act as gateways to the crypto market and liquidity shelters during periods of volatile.
As a result, rapid issuance of tethers for the week reflects an expansion more than mere expansion, as it shows investors’ positions ahead of changes in macroeconomic conditions.
Meanwhile, the latest Mint has changed the balance of stable distribution across the blockchain.
Sponsored Sponsors
Defillama data shows that Ethereum currently hosts $81 billion worth of USDT, accounting for 45% of the total circulation. That edge is ahead of Tron, which holds $78.6 billion or 43.7%.
Meanwhile, smaller allocations remain for Binance’s BNB chain and Solana.
This distribution strengthens Tether’s dominance in the $292.6 billion Stablecoin sector, which accounts for nearly 59% of the market with a supply of $172 billion in USDT alone.
Naturally, Tether CEO Paolo Aldoino has promoted the accelerated adoption of USDT in the space.
He revealed that over 3.5 million new wallets have begun to hold at least $1 in USDT over the past 90 days.
That surge highlights the growing dominance of publishers and strengthens its position at the heart of crypto liquidity.
