Tether Mints $5B in USDT Amid Fed Rate Cut and Rising Crypto Demand

Tether has minted $5 billion in USDT over the past week, highlighting growing demand for stablecoins and digital assets following the U.S. Federal Reserve’s recent interest-rate cut. On September 19, blockchain analytics platform Onchain Lens reported that Tether created an additional $1 billion in tokens on Ethereum, adding to $4 billion minted ahead of the Federal Open Market Committee (FOMC) meeting on September 17.

At that meeting, Fed Chair Jerome Powell announced a 0.25% reduction in the benchmark interest rate—the first cut of 2025—and hinted at more easing ahead. The move, which lowers borrowing costs, is seen as a catalyst for risk assets like cryptocurrencies. Stablecoins such as USDT often benefit during these times, serving as both a gateway into crypto markets and a liquidity safe haven.

According to DeFiLlama, Ethereum now hosts $81 billion worth of USDT, representing 45% of the supply, while Tron holds $78.6 billion, or 43.7%. Smaller allocations remain on BNB Chain and Solana. This distribution further cements Tether’s dominance in the $292.6 billion stablecoin market, where USDT alone commands nearly 59% with $172 billion in circulation.

Tether CEO Paolo Ardoino emphasized the growing adoption, revealing that in the past 90 days, more than 3.5 million new wallets began holding at least $1 of USDT. This growth nearly triples the combined adoption of rival stablecoins, strengthening Tether’s position at the center of crypto liquidity.

The rapid issuance of USDT not only reflects market demand but also signals investor positioning as macroeconomic conditions shift. With interest rates trending lower, Tether’s expanding supply underscores its role as the leading stablecoin driving liquidity across the crypto ecosystem.