Tether mints $1 billion USDT on Ethereum amid ETF anticipation
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 Tethers 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, Tethers inventory replenishment involves creating new USDT tokens in anticipation of heightened customer demand. These tokens, held in Tethers treasury, are classified as authorized but not issued, meaning they are not yet in circulation or included in USDTs current total market cap.
According to Tethers Transparency page, there were $87.8 million worth of such USDT on Ethereum as of May 21. Over the past year, Tethers market cap has grown significantly, surpassing $110 billion and controlling around 70% of the market, according to CryptoSlates 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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Text source: CryptoSlate
