Key Takeaways
- Tether minted $1 billion USDT on Ethereum ahead of the FOMC meeting.
- Historical patterns show such mints often precede Bitcoin price rallies and increased liquidity.
- Tether clarified the tokens are reserved for future issuance as market demand arises.
Tether minted $1 billion USDT on Ethereum just hours before the Federal Reserve’s FOMC interest rate decision on June 18, 2025.
The move, flagged by the on-chain analytics platform Lookonchain, has drawn attention due to historic correlations between large USDT issuances and Bitcoin price rallies or shifts in market liquidity.
Lookonchain stated:
“Tether just minted another 1B USDT. The last two times Tether minted USDT, BTC pumped. Will BTC pump again this time?”
Tether’s CEO, Paolo Ardoino, clarified that the newly created tokens were “authorized but not issued,” meaning they are held in reserve for future issuance as market demand develops.
Ardoino explained that these tokens serve as inventory for upcoming issuance requests and chain swaps, enabling quick response to liquidity needs from exchanges or institutional players.
Whale Alert, a blockchain transaction tracking account, reported Tether transferring the freshly minted USDT to multiple addresses, including the Bitfinex exchange.
Historical context and market anticipation
This is not the first instance of large-scale USDT creation.
In December 2024, Tether minted $1 billion USDT, and earlier, $19 billion was issued over several mints.
These events coincided with rising exchange volumes and sharp upticks in Bitcoin trading activity, fueling market speculation about renewed “risk-on” sentiment.
Bitcoin investors and analysts, such as Lark Davis, noted:
“Plenty of dry powder coming into the market.”
As the market awaits the FOMC’s decision, traders are watching for signals that could prompt another round of buying, especially with new stablecoin liquidity waiting on the sidelines.
