Tether has minted $1 billion worth of USDT on the Ethereum blockchain just prior to the Federal Reserve’s Federal Open Market Committee (FOMC) meeting.
This newly created USDT is designated as reserves for future issuance, meaning it is not immediately entering circulation. Tether stated the minting prepares for anticipated demand from exchanges and institutional investors.
Historical patterns suggest large-scale USDT mints often precede upward movements in Bitcoin’s price. Analysts point to this correlation as a potential indicator of bullish momentum entering the market.
The timing coincides with heightened market anticipation surrounding the Fed’s impending interest rate decision, which is widely expected to influence cryptocurrency market dynamics.
Tether CEO Paolo Ardoino clarified the nature of the mint, stating the $1 billion USDT is ‘authorized but not issued,’ serving strictly as liquidity reserves for future requirements.