TLDR
- Tether and Circle collectively minted $7 billion in stablecoins following the October 11 market crash.
- Tether issued an additional $1 billion USDT within just eight hours to meet rising liquidity demand.
- The stablecoin minting indicates institutional preparation for increased market activity and recovery.
- Konstantin Vasilenko said stablecoins are becoming increasingly used for payments, not just for trading.
- The International Monetary Fund warned that stablecoins could pose systemic risks to global financial markets.
Tether and Circle minted $7 billion in stablecoins after the October 11 market crash, boosting post-crash liquidity. Tether issued $1 billion in USDT in the last eight hours alone, indicating rising demand. This large-scale minting signals institutional preparation for high-volume trading activity.
Tether Responds With Major Liquidity Injection
Tether minted $1 billion in USDT on Wednesday to stabilize market conditions and meet liquidity needs. The recent issuance follows the broader $7 billion stablecoin mint by both Tether and Circle after the crash. This response suggests Tether is actively reinforcing market resilience during volatile conditions.
Tether(@Tether_to) just minted 1B $USDT again 6 hours ago!#Tether and #Circle have minted $7B in stablecoins after the 1011 market crash.https://t.co/bcw2rlrHIw pic.twitter.com/yb6OxxU28z
— Lookonchain (@lookonchain) October 22, 2025
The additional USDT supports liquidity on exchanges, providing traders with more stable assets to execute positions during uncertainty. Tether typically mints large amounts of USDT to meet immediate demand from institutional clients. This latest mint follows a pattern of stabilizing the ecosystem after significant drawdowns.
Tether remains the largest stablecoin issuer by market capitalization and frequently leads market recovery efforts through new token supply. Its recent activity indicates confidence in crypto’s rebound and signals a buildup of capital for anticipated trading surges. Moreover, Tether’s actions suggest potential price movement opportunities.
Circle Contributes to the Post-Crash Stabilization
Circle also played a significant role in the $7 billion injection by minting additional USDC to help normalize liquidity across platforms. While the company did not disclose exact amounts, on-chain data confirms substantial increases in its circulating supply. The USDC issuer has demonstrated a pattern of intervening during periods of distress.
Institutional actors typically convert capital to USDC during uncertain times to maintain dollar exposure. This move allows funds to act swiftly when re-entering volatile crypto markets. Circle’s supply boost appears to align with that strategy.
This mint supports the trend of using stablecoins for hedging, strategic buys, and exchange liquidity post-crash. Traders are increasingly preferring USDC due to its transparency and regulatory ties within the U.S. financial ecosystem. As a result, Circle’s mint suggests preparations for renewed activity in major markets.
Stablecoin Activity Indicates Confidence and Growing Utility
Konstantin Vasilenko, Co-Founder of Paybis, stated that stablecoins are shifting crypto adoption from speculation to practical utility. “Stablecoin is now digital cash, more or less,” said Vasilenko during an interview with TheStreet Roundtable. He emphasized that businesses are now transacting using stablecoins globally.
Vasilenko added that trading volumes are nearly equal to payment volumes for stablecoins. This change reflects how digital dollars are becoming mediums of exchange in real-world commerce. He noted that businesses are increasingly adopting dollar-backed digital assets for settlements.
However, the IMF has recently warned of systemic risks associated with overreliance on stablecoins. The Fund stated that loss of confidence could affect bank deposits and bond markets. The IMF also cited Ethena’s brief de-pegging during the crash as a red flag.
Regulatory Concerns Grow as Stablecoins Reach Global Scale
The International Monetary Fund warned that stablecoins could limit central banks’ control over inflation and liquidity. They expressed concern that dollar-backed digital assets may compete with national currencies. Regulatory bodies plan to intensify oversight as global adoption accelerates.
Standard Chartered estimated that stablecoin adoption could drain $1 trillion from emerging market banks over the next three years. The bank highlighted capital flight from countries like Egypt, Pakistan, and Bangladesh to stablecoin platforms. This trend poses a threat to traditional banking functions in inflation-prone regions.
Analysts Geoff Kendrick and Madhur Jhar stated that users prioritize capital preservation over yields. The U.S. GENIUS Act currently bars stablecoin yields. Despite that, users in emerging markets prefer stability and liquidity over uncertain local banking systems.
