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Cryptopolitan 2025-06-23 07:40:52

Tether adds $2 billion worth of new USDT on Tron

Tether minted $2 billion worth of new USDT on the Tron blockchain to boost its reserves and prepare for higher demand. The minting happened in two steps as the company made $1 billion earlier and later added another $1 billion, which CEO Paolo Ardoino confirmed. Whale Alert posted on X , highlighting the latest $1 billion USDT mint at Tether’s Treasury address. Paolo Ardoino explained that the USDT is “authorized but not issued”. Tether holds it in reserve for future use, like customer redemptions or moving tokens between blockchains. Tether creates new USDT to meet future needs Tether’s recent decision to mint $2 billion worth of USDT on the Tron blockchain comes after another $1 billion USDT mint on Ethereum on June 18, just before the U.S. Federal Reserve’s latest FOMC meeting . Tether has created a historic pattern in which it preemptively boosts stablecoin reserves ahead of possible liquidity surges. So many investors and analysts now assume the company expects the market conditions to change. Blockchain analytics firm Lookonchain said the company is preparing in advance for expected demand because it is issuing large amounts of USDT without putting it directly into circulation. Stablecoins like USDT also lack the volatility of regular cryptocurrencies. They are common in market trends that Tether’s minting behavior follows, such as when investors increase their activity or when trading volumes spike on major exchanges. Popular crypto investor and commentator Lark Davis described the minting as a sign that “dry powder” is entering the system. This means the capital exists and will be deployed once favorable market conditions arise. His comments show hope of an upcoming shift to a more risk-on investment environment if the Fed leans toward cutting interest rates or signaling continued support for financial markets. Tether builds up reserves to keep USDT stable Tether continues to grow its reserves to support the stability and trust behind its popular stablecoin tied to the value of the U.S. dollar, USDT. Minting more tokens and holding them in reserve gives users confidence that they can always redeem their USDT for dollars if needed because it proves each USDT in circulation is fully supported by assets of equal value. The most recent $2 billion minting happened on the Tron blockchain because Tron offers fast and low-cost transfers for users who need to move large amounts of money quickly and affordably. Tether is giving users more flexibility in how they use the token and allowing exchanges and crypto to choose the network that best suits their needs in terms of speed and transaction fees by spreading USDT across multiple blockchains like Tron, Ethereum, and others. Tether’s CEO, Paolo Ardoino, said the newly minted USDT allows the company to respond faster to future demands from exchanges, institutional clients , or users who want to swap USDT between blockchains. This is because they are created in advance and held in Tether’s treasury as inventory. The company says it issues new tokens to ensure smooth service, not to influence or predict price movements, but some people in the crypto community think these large mints usually happen before Bitcoin and Ethereum prices rise and show incoming market rallies Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More

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