Tether mints an additional $3B in USDt stablecoins

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Tether mints an additional $3B in USDt stablecoins

crypto :: 2024-11-25 :: source - cointelegraph

By Vince Quill

Stablecoin issuer Tether minted an additional $3 billion in USDt USDT $1.00 tokens on Nov. 23 on the Ethereum and Tron networks amid increased trading volume in the crypto markets — particularly Bitcoin as it neared the $100,000 price level.

Data from Arkham Intelligence revealed that $2 billion in USDt was minted on the Ethereum blockchain and an additional $1 billion USDt was minted on the Tron network in back-to-back transactions.

According to Lookonchain, Tether has minted approximately $13 billion USDt since Nov. 8. On Nov. 24, Tether CEO Paolo Ardoino said, “In 2025, Tether will need to reach hyper-productivity to accomplish our grand vision.”

Traders and investors often use stablecoin volume as a proxy to gauge interest in the crypto markets. Many traders regard a high volume of newly minted stablecoins as a bullish sign for price action, while low volume indicates the opposite.

*Tether mints billions in USDt. Source: Arkham Intelligence*

Political tailwinds and historic Bitcoin rally see Tether’s fortunes rise

Following the election of Donald Trump on Nov. 5, the price of Bitcoin (BTC) surged dramatically from about $69,000 to an all-time high of over $99,000 in the two weeks following the United States elections.

Investors and traders use stablecoins like Tether’s USDt as a fiat on-ramp to purchase crypto and an off-ramp to cash out of their positions, so increased trading activity drives stablecoin demand.

According to Bitcoin developer and cypherpunk Adam Back, the price of Bitcoin could go as high as $1 million if a Bitcoin strategic reserve is established under the incoming Trump administration — triggering a sovereign digital arms race to acquire Bitcoin and front-run other nation-states.

On Nov. 19, President-elect Trump chose Cantor Fitzgerald CEO and crypto advocate Howard Lutnick to serve as commerce secretary. Cantor Fitzgerald manages Tether’s US Treasury reserves backing the USDt stablecoin.

Five days after the cabinet appointment of Lutnick, Cantor Fitzgerald announced it acquired a 5% stake in Tether, valued at upward of $600 million.

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