Stablecoin

Ethereum

Billion

Stablecoin issuer Tether has minted $1 billion USDT tokens on the Ethereum blockchain, seizing an opportunity amid growing anticipation surrounding the potential approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC) later this week.
The minting was initially reported by Whale Alert and later confirmed by Tether CEO Paolo Ardoino. Ardoino clarified that this transaction was authorized but not yet issued, indicating that the tokens would serve as inventory for future issuance requests and chain swaps.
This move by Tether aligns with market analysts’ suggestions that it’s a strategic maneuver ahead of a possible <a href="https://www.unlock-bc.com/123425/will-ethereum-etf-boom-last-staking-rewards-explained/" class="ek-link" rel="noopener noreferrer nofollow">market rally driven by an ETH ETF approval</a>.
Ivan Sherbakov, CEO of Cryptorobotics, speculated that this infusion of liquidity “will be used to pump the market ahead of ETF news,” reflecting a common practice in the crypto space.
Historically, Tether has replenished its inventory in anticipation of increased demand, creating tokens that are held in its treasury but not yet circulated. As of May 21, there were $87.8 million worth of such USDT tokens on Ethereum, according to Tether’s Transparency page.
It is worth noting that Tether’s market cap has experienced significant growth over the past year, exceeding $110 billion and dominating approximately 70% of the stablecoin market. This growth has been fueled by various factors, including the successful launch of spot Bitcoin ETFs in the U.S. and Tether’s expansion into other sectors like Bitcoin mining.
The recent minting of USDT tokens highlights the growing importance of stablecoins in the crypto market, particularly amid speculation surrounding regulatory approvals and market movements. However, according to Crypto.news, some analysts at Deutsche Bank have raised concerns about Tether’s lack of transparency and the potential risks associated with its dominant position in the stablecoin market, which currently exceeds $160 billion in total capitalization.
The post <a href="https://www.unlock-bc.com/123448/tether-mints-1-billion-on-ethereum-amid-etf-approval-speculation/" rel="noopener noreferrer nofollow">Tether Mints $1 Billion on Ethereum Amid ETF Approval Speculation</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.

Tether Mints $1 Billion on Ethereum Amid ETF Approval Speculation

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