Tether minted an additional $3 billion in USDt tokens on November 23, responding to a surge in crypto market activity, particularly Bitcoin, which neared the $100,000 price level. According to Arkham Intelligence, $2 billion of this total was minted on the Ethereum blockchain, and $1 billion on the Tron network. This follows an overall trend of increased stablecoin demand as Bitcoin’s price skyrocketed after the U.S. election.
Minting stablecoins like Tether’s USDt is often seen as a reflection of increased market interest. Traders view a rise in stablecoin minting as a bullish signal, indicating growing demand and trading volume. Tether minted around $13 billion USDt since November 8, with CEO Paolo Ardoino noting on November 24 that Tether would focus on “hyper-productivity” in 2025.
Following Donald Trump’s election, Bitcoin’s price surged from about $69,000 to over $99,000 in just two weeks. This surge in Bitcoin’s price was accompanied by heightened demand for stablecoins, which are used as an on-ramp to purchase crypto and an off-ramp to liquidate positions. Stablecoins like USDt play a crucial role in connecting the crypto and fiat systems.
Bitcoin developer Adam Back speculated that Bitcoin could rise to $1 million if the incoming Trump administration establishes a Bitcoin strategic reserve, triggering a global “digital arms race.” On November 19, Trump appointed Howard Lutnick, CEO of Cantor Fitzgerald, as commerce secretary. Lutnick’s firm manages Tether’s US Treasury reserves, which back the USDt stablecoin.
Cantor Fitzgerald’s Stake in Tether
Five days after Lutnick’s appointment, Cantor Fitzgerald announced a 5% stake in Tether, valued at over $600 million. This deal further solidifies the growing involvement of traditional financial institutions in the crypto space, especially in stablecoin management and reserves.
| Metric | Data |
|---|---|
| Total USDt Minted (Nov. 23) | $3 billion ($2B on Ethereum, $1B on Tron) |
| Total USDt Minted (Since Nov. 8) | $13 billion |
| Bitcoin Price Surge | From $69,000 to over $99,000 in two weeks after Nov. 5 election |
| Tether User Base | Used as fiat on-ramp and off-ramp for Bitcoin transactions |
| Cantor Fitzgerald’s Stake in Tether | 5% stake valued at over $600 million |
Tether’s increased minting and growing adoption in the crypto market underscore the essential role stablecoins play in bridging fiat and digital assets. As Bitcoin’s price continues to climb, stablecoins are becoming a critical tool for liquidity and market stability. However, the influence of centralized entities like Tether raises questions about the long-term implications for decentralization and the balance of power within the crypto space.
Featured image credit: Marco Verch via CCNull
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