Tether has minted $1 billion USDT on the Ethereum blockchain shortly before the Federal Reserve's latest Federal Open Market Committee (FOMC) rate decision on June 18, 2025. This move follows Tether's strategic approach to proactively prepare liquidity for anticipated market demand surrounding major economic events.
On-chain analytics provider Lookonchain highlighted the minting, noting that the last two similar large-scale USDT issuances by Tether preceded rallies in Bitcoin's price and marked important liquidity shifts in the market. Whale Alert reported Tether transferring the newly minted USDT to various addresses, including the Bitfinex exchange, signifying active distribution and inventory management.
Tether's CEO, Paolo Ardoino, clarified that the minted tokens are "authorized but not issued," meaning they are held as inventory reserves to promptly satisfy forthcoming demand, especially from exchanges and institutional investors. Historically, such sizable stablecoin issuances align with increased trading volumes, improved liquidity, and heightened volatility in assets like Bitcoin (BTC) and Ethereum (ETH).
Over the past year, Tether has repeatedly increased USDT issuance in response to shifting market conditions, most notably minting $1 billion USDT in December 2024 and a cumulative $19 billion at other times, fueling market rebounds and institutional engagement.
Market observers and crypto investors, including Bitcoin advocate Lark Davis, speculate that the fresh USDT liquidity could herald a "risk-on" buying phase, potentially catalyzing price rallies in Bitcoin and Ethereum if the FOMC signals a dovish or neutral stance regarding interest rates. Thus, this minting event is seen as an indicator of preparedness for increased market activity and trading ahead of the FOMC announcement.