United

Simply

Tether (<a href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow">USDT</a>) balances on crypto exchanges hit a record high of 20.339 billion on Aug. 13, signaling investors are gearing up to deploy these stablecoins into crypto assets ahead of the United States Federal Reserve’s September rate decision.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-08/1876f58b-000a-49e3-88eb-c0bfb2efe929.png" alt="Tether crypto exchanges balance hits record high as Treasury prints $1B USDT">
 <figcaption style="text-align: center;">Tether balance on crypto exchanges. Source: Glassnode
 </figcaption>
</figure>
<h2 id="tether-treasury-mints-1b-worth-of-usdt">Tether Treasury mints $1B worth of USDT</h2>
Tether’s record balance across crypto exchanges followed the minting of $1 billion worth of stablecoin by its namesake treasury. On Aug. 13, data tracking platform Whale Alert noted that Tether had added another $1 billion on the Ethereum network.
Paolo Ardoino, the CEO of Tether, clarified that the recent $1 billion USDT transaction was an "inventory replenish," emphasizing that it was "authorized but not issued." Simply put, the tokens are reserved for future issuance requests and chain swaps.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-08/0e518839-5220-404f-98e1-0f1368df4e11.png" alt="Tether crypto exchanges balance hits record high as Treasury prints $1B USDT" title="">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/paoloardoino/status/1823331317624311866" target="_blank" rel="noopener noreferrer nofollow">X</a>
 </figcaption>
</figure>
In traditional finance, inventory replenishment involves ordering stock to meet demand without overstocking. Similarly, Tether creates USDT to maintain sufficient reserves, holding them in its treasury until needed, ensuring smooth liquidity management without immediately releasing them into circulation.
<a href="https://tether.to/en/transparency/#usdt" target="_blank" rel="noopener noreferrer nofollow">According</a> to data from the Tether Transparency page, $941.72 million in USDT stand “authorized but not issued” on Ethereum as of Aug. 14. In other words, approximately 60 million USDT from the recent $1 billion mint have already entered circulation, highlighting the strong demand.
<h2 id="are-usdt-investors-waiting-on-the-sidelines">Are USDT investors waiting on the sidelines?</h2>
Historically, Tether's balance on exchanges has increased during both bear and bull markets.
In bearish conditions, the rise in USDT reserves often signals that traders convert volatile cryptocurrencies into stablecoins, seeking safety amid market uncertainty. Conversely, during bull markets, USDT accumulation may indicate that traders are stockpiling stablecoins to deploy them for crypto purchases when prices drop.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-08/6d22ce83-124d-4351-9308-c7f784d28629.png" alt="Tether crypto exchanges balance hits record high as Treasury prints $1B USDT">
 <figcaption style="text-align: center;">USDT exchange balance vs. Bitcoin price chart. Source: Glassnode
 </figcaption>
</figure>
Recent signs show the potential for a bullish case.
For instance, on Aug. 13, Tether Treasury sent $141.50 million USDT to crypto trading firm Cumberland. The latter forwarded the capital across multiple crypto exchanges, including Binance, Coinbase, and Kraken, according to <a href="https://x.com/lookonchain/status/1823370426170609722" target="_blank" rel="noopener noreferrer nofollow">Lookonchain</a>.
Cumberland has sent $1.08 billion in USDT to crypto exchanges in over a week,&nbsp;suggesting that institutional players might be positioning themselves for potential market volatility ahead of the Fed’s September rate decision.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-08/d106d6a5-b632-4f50-b2b2-83e06851b793.png" alt="Tether crypto exchanges balance hits record high as Treasury prints $1B USDT" title="">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/trozan009/status/1823345983247556793" target="_blank" rel="noopener noreferrer nofollow">X</a>
 </figcaption>
</figure>
If the Fed's decision leans towards a rate cut—as the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener noreferrer nofollow">CME data strongly indicates</a>—it could spark optimism in the market.
"Nearly $2.8 billion was issued by Tether and Circle earlier last week, indicating that some institutional investors are injecting fresh capital into the crypto market," <a href="https://cointelegraph.com/news/stablecoin-issuance-could-be-key-bitcoin-next-rally-10x-research" rel="noopener noreferrer nofollow">argues</a> Markus Thielen,&nbsp;head researcher at 10x Research, in his latest report, adding:
<blockquote>
 "If this trend of issuance (not just minting) continues, Bitcoin could see further gains."
</blockquote>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Tether crypto exchanges balance hits record high as Treasury prints $1B USDT

Table of Contents

Cointelegraph

Other articles published on Aug 14, 2024

DEX activity extracted $518M from Solana in the form of fees

Think Bitcoin Is Volatile? These Crypto-Related Stocks May Witness More Significant Price Swings ...

Lido Finance Ventures Beyond Ethereum, Expands to BNB Chain

2024년 최고의 해외 토토사이트추천 및 선택 가이드

Will The Solana Memecoins Surge Again? WIF, BONK, and POPCAT Make Bullish Signals

Klasha announces multi-currency accounts for businesses

Join our free newsletter for daily crypto updates!