Tether mints $2B USDT on Tron for inventory, not market moves, as Bitcoin rebounds past $100K, signaling stablecoin demand.
Tether has announced the minting of 2 billion USDT on the Tron blockchain, just one week after minting 1 billion USDT. Tether maintains that the mint is a routine operational procedure and is not a response to the recent geopolitical crisis, even though the new mint has caused some tongues to stir. This is in relation to Bitcoin’s recent reclaim of $100,000.
Tether Treasury Utilizes Tron to Produce 2 Billion USDT
The stablecoin issuer has continued its impressive streak of minting new USDT tokens on the Tron blockchain. Tether generated 2 billion USDT in two distinct transactions, each generating 1 billion USDT within minutes, as indicated by an X post by Whale Alert.
Paolo Ardoino disclosed that the stablecoin issuer will retain the 2 billion USDT for future use rather than circulating them. Ardoino clarified that Tether authorized the mint, and the tokens will remain in inventory until they are prepared for deployment.
“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,” said Ardoino.
Traders interpret the move as “ammo-loading” in anticipation of upcoming market movements, even though the new USDT will not be introduced to the markets. In the past, Tether generated 1 billion USDT, with a substantial portion of it being transmitted to Bitfinex, an exchange affiliated with Tether.
The action is operational rather than a response to the recent crypto market collapse, which resulted in Bitcoin’s decline below $100K.
The Bitcoin price has once again reached $100,000
The price of Bitcoin has once again surpassed $100,000 due to reports of the USDT minting. After trading above the $100K mark for over a month, the Bitcoin price plummeted below $100K amid concerns regarding an Iranian retaliation on US soil.
Bitcoin is trading at $100,900, partially recovering its losses from the previous day. After a rout that liquidated over $1.1 billion in the crypto market, other altcoins are beginning to recover.
The USDT mints have consistently preceded a rally in the past, as they indicate the inflow of fiat into the cryptoverse. The movement of the newly minted USDT to exchanges and OTC desks frequently indicates that institutional purchasers are making incoming Bitcoin purchases. Since the GENIUS Act was enacted, Tether’s USDT mints have increased, and RLUSD and Circle have developed new tokens in response to the new stablecoin regulations.