Tether Issues $5 Billion USDT After Fed Cuts Rates for the First Time This Year

Tether issued $5 billion USDT over the past week, underscoring the renewed demand for digital assets following the latest rate cut by the US Federal Reserve.

On September 19, 2024, blockchain analytics platform Onchain Lens revealed that stablecoin issuers created an additional $1 billion in Token on Ethereum.

Tether Expands USDT Supply by $5 Billion in One Week

This is in addition to the $4 billion issued ahead of the Federal Open Market Committee (FOMC) meeting on September 17, 2024.

At that meeting, Federal Reserve Chairman Jerome Powell announced a 0.25 percentage point cut in the benchmark interest rate —the first cut of 2025—and hinted that further easing could be on the way.

The move, which reduces borrowing costs, is often seen as a potential catalyst for risk assets, including cryptocurrencies.

Market experts note that stablecoins like USDT often benefit in such environments as they act as a gateway to the crypto market and a liquidation haven during volatile periods.

As a result, Tether 's rapid issuance over the past week is not simply expansionary, but also reflects investor positioning in the face of changes in macroeconomic conditions.

Meanwhile, the latest release has changed the distribution of stablecoins across blockchains.

Data from defillama shows that Ethereum currently holds $81 billion in USDT, accounting for 45% of total circulation. This puts it ahead of TRON, which holds $78.6 billion, or 43.7%.

Meanwhile, smaller allocations remain on Binance's BNB Chain and Solana.

This allocation cements Tether 's dominance in the $292.6 billion stablecoin sector, where USDT alone accounts for nearly 59% of the market with a $172 billion supply.

It is no surprise that Tether CEO Paolo Ardoino has praised USDT 's rapid rise in this space.

He revealed that over the past 90 days, more than 3.5 million new wallets have started holding at least $1 USDT—nearly three times the combined growth of rival stablecoins.

That increase underscores the issuer's growing dominance, cementing its position at the center of crypto liquidation .