Tether Treasury Mints $1B USDT, Triggers Transfers to Major Exchanges

Tether Treasury has minted another $1 billion on Ethereum, bringing its total issuance over the past year to 23 billion USDT.

Stablecoin issuer Tether has minted another $1 billion of its USDT stablecoin on the Ethereum blockchain, bringing its total issuance over the past year to 23 billion USDT, according to data from Blockscan.

This latest minting event has also triggered significant transfers of USDT to major centralized cryptocurrency exchanges, signaling possible shifts in market liquidity and investor sentiment.

Crypto surveillance platform Spot On Chain called attention to these movements in a recent update.

After the minting, Tether transferred 183.2 million USDT to Cumberland, a trading firm. Notably, Cumberland has been actively moving USDT into various centralized exchanges (CEXs), with a total of 953 million USDT received from Tether since the market crash on August 5, 2024.

Cumberland Injects USDT Into CEXs

Cumberland has injected 906.7 million USDT into prominent centralized exchanges like Coinbase, Kraken, OKX, Binance, and Bullish post-crash. The largest recipient, Coinbase, received 106.07 million USDT in the last 24 hours, accumulating a total of 468.96 million USDT from Cumberland since August 6, 2024.

Kraken followed with 64.13 million USDT deposited in the past 24 hours, amounting to 207.58 million USDT overall. Despite no recent deposits to Binance and Bullish, they have received 81.64 million USDT and 32.00 million USDT, respectively, since August 6.

Bitcoin Traders Watching Stablecoin Inflows

Meanwhile, Bitcoin traders are keeping a close eye on stablecoin inflows, which are being watched as potential indicators of market movements. 10x Research, a digital asset research firm, noted that the $2.5 billion stablecoin inflow, including the recent $1 billion USDT mint, could have a bullish impact on Bitcoin.

They emphasized the importance of tracking these money flows, as they can act as tailwinds or headwinds for cryptocurrency prices. The firm pointed out that a significant portion of the USDT and Circle-issued stablecoins last week could suggest fresh capital entering the market, potentially leading to further price gains if this trend continues.

This latest minting event also follows a pattern of large-scale USDT mints, which have historically influenced Bitcoin and other cryptocurrency price movements.

Previous instances, such as the March minting of 3 billion USDT, were followed by extended bullish trends. Data from CryptoQuant indicated that the circulating supply of USDT has increased by 30 billion since late 2022, contributing to improved market liquidity and investor confidence.