Tether issued $1 billion USDT on Ethereum amid ETF expectations.

Stablecoin issuer Tether has issued $1 billion worth of USDT tokens on the Ethereum blockchain, capitalizing on a market rally fueled by hopes that the U.S. Securities and Exchange Commission (SEC) will approve trading of a spot ETH ETF this week.

Whale Alert first reported the minting, which was later confirmed by Tether CEO Paolo Ardoino. He wrote:

“PSA: 1 billion USDt stock replenished on Ethereum network. This is a transaction that has been approved but not issued. In other words, this amount will be used as inventory for issuance requests and chain swaps in the next period.”

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Market analysts have suggested that Tether’s new issuance is a strategic move ahead of a potential market rally triggered by the approval of the ETH ETF. Ivan Sherbakov, CEO of Cryptorobotics, said the minting “will be used as liquidity to stimulate the market ahead of the ETF news.”

This analysis is consistent with data showing a correlation between increased supply of USDT and broader upward movements in cryptocurrency markets, leading to increased trading volume and a more dynamic environment for the digital asset.

Typically, Tether’s inventory replenishment involves creating new USDT tokens in anticipation of increased customer demand. These tokens, held in Tether’s vaults, are classified as ‘approved but unissued’ tokens. This means that it is not yet in circulation or is not included in USDT’s current total market capitalization.

According to Tether’s transparency page, as of May 21, there was $87.8 million worth of USDT on Ethereum. Over the past year, Tether’s market capitalization has grown significantly, surpassing $110 billion and controlling approximately 70% of the market. CryptoSlate’s data.

This growth can be attributed to several factors, including the successful launch of spot Bitcoin ETFs in the United States. Tether has also seen varying degrees of success in other endeavors, including diversifying its operations beyond its flagship USDT stablecoin product into other sectors such as Bitcoin mining.

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