Tether Mints $5 Billion USDT After Fed Rate Cut

Tether has minted $5 billion in USDT within the past week, underscoring renewed demand for digital assets following the US Federal Reserve’s latest interest-rate cut.

On September 19, blockchain analytics platform Onchain Lens revealed that the stablecoin issuer created another $1 billion in tokens on Ethereum.

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Tether Expands USDT Supply by $5 Billion in a Week

This added to the $4 billion minted before the Federal Open Market Committee (FOMC) meeting on September 17.

At that meeting, Federal Reserve Chair Jerome Powell announced a 0.25 percentage point reduction in the benchmark rate—the first cut of 2025—and suggested that further easing could follow.

The move, which reduces borrowing costs, is often interpreted as a potential catalyst for risk assets, including cryptocurrencies.

Market experts note that stablecoins like USDT typically benefit in such environments because they function both as a gateway into crypto markets and as a liquidity refuge during volatile periods.

As a result, Tether’s rapid issuance during the week reflects more than a mere expansion, as it signals investor positioning ahead of shifting macroeconomic conditions.

Meanwhile, the latest minting has altered the balance of stablecoin distribution across blockchains.

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Data from DeFiLlama shows Ethereum now hosts $81 billion worth of USDT, accounting for 45% of total circulation. That edge places it ahead of Tron, which holds $78.6 billion or 43.7%.

Meanwhile, smaller allocations remain on Binance’s BNB Chain and Solana.

This distribution strengthens Tether’s dominance in the $292.6 billion stablecoin sector, where USDT alone represents nearly 59% of the market with $172 billion in supply.

Unsurprisingly, Tether CEO Paolo Ardoino touted USDT’s accelerating adoption in the space.

He revealed that in the past 90 days, more than 3.5 million new wallets began holding at least $1 of USDT—almost triple the combined growth of rival stablecoins.

That surge underscores the issuer’s growing dominance, reinforcing its position at the center of crypto liquidity.