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Tether Mints $3 Billion in USDT Amid Post-Trump Election BTC Surge

DATE POSTED:November 25, 2024
Key Takeaways
  • Blockchain data shows that $2 billion was issued on the Ethereum blockchain, while $1 billion was minted on Tron
  • Paolo Ardoino, Tether’s CEO, stated that “Tether will need to reach hyper-productivity to accomplish our grand vision in 2025.” 

Tether has minted an additional $3 billion in USDT stablecoins. As per blockchain data from Arkham Intelligence shows that $2 billion was issued on the Ethereum blockchain, while $1 billion was minted on Tron, with both transactions executed back-to-back.

This substantial minting is part of Tether’s broader expansion, with approximately $13 billion USDT minted since November 8, according to Lookonchain. The surge in stablecoin supply coincides with heightened optimism in the crypto market following Donald Trump’s election as U.S. President.

Trump’s victory has sparked bullish sentiment in the sector, with Bitcoin’s price jumping from $69,000 to over $99,000 in just two weeks. Analysts have linked this rally to expectations of a more favorable regulatory environment for digital assets under Trump’s administration.

His recent appointment of Howard Lutnick, CEO of Cantor Fitzgerald, as Commerce Secretary has further fueled speculation. Cantor Fitzgerald manages Tether’s U.S. Treasury reserves, which back its USDT stablecoin, strengthening ties between Tether and broader U.S. financial strategies.

Stablecoins like USDT play a vital role in the crypto ecosystem by acting as a bridge between fiat currencies and digital assets. Traders often rely on stablecoins to facilitate transactions, manage liquidity, and enter or exit positions quickly during periods of market volatility. Tether’s latest minting could drive an increase in trading volumes and enhance liquidity across exchanges.

Paolo Ardoino, Tether’s CEO, highlighted the company’s ambitions, stating on November 24 that “Tether will need to reach hyper-productivity to accomplish our grand vision in 2025.” While the specifics remain undisclosed, the statement underscores Tether’s intent to expand its influence within the digital finance space.

Beyond its immediate trading implications, Tether’s new USDT issuance is expected to strengthen market stability. Higher liquidity reduces vulnerability to price manipulation and supports smoother price discovery, attracting more institutional investors.

The minting aligns with a broader market narrative fueled by speculation about Trump’s policies. Bitcoin developer Adam Back recently speculated that the incoming administration could establish a BTC strategic reserve, potentially triggering a global “digital arms race” and pushing Bitcoin’s price toward $1 million.