USDT Surpasses $1 Billion in Issuance, Reclaiming Dominance in Stablecoin Market

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In 2025, Tether has significantly expanded its footprint in the stablecoin ecosystem, with over $1 billion in cumulative issuance across multiple blockchain platforms. According to blockchain data and monitoring from security provider PeckShield, Tether conducted 10 major "minting" events on the Omni, ERC20, and TRC20 networks since April alone, totaling $745.9 million in new supply. This aggressive issuance has pushed the total market circulation of USDT beyond $3 billion, reinforcing its position as the leading stablecoin by market share.

While stablecoin issuance is a routine monetary operation, the scale and method behind this year’s activity mark a notable shift. Unlike previous "transfer-based issuance" — where USDT was simply moved from Tether Treasury to circulation — these recent actions represent true on-chain minting: new tokens were generated directly on each respective blockchain. Combined with $329.5 million in transfer-based releases on the Bitcoin Omni network since January, Tether's total issuance for the year exceeds **$1.075 billion**.

This resurgence comes amid ongoing scrutiny around Bitfinex’s alleged use of Tether funds to cover financial shortfalls. While unproven, these concerns have led some observers to question whether Tether’s expansion is backed by real reserves or speculative leverage.

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High-Frequency Minting Across Multiple Chains

PeckShield’s real-time monitoring platform recorded 10 distinct minting events for USDT since April — averaging one every three days. The distribution across chains reveals strategic priorities:

The frequency highlights growing demand for USDT across diverse ecosystems. Ethereum remains the most active platform due to its integration with decentralized finance (DeFi) applications, while TRON’s low transaction fees and fast settlement times make it ideal for high-volume transfers.

Jeff, head of PeckShield’s Silicon Valley R&D center, explained: "Before this round of minting, Tether Treasury’s balance had dropped to around $150 million. As market sentiment warmed in early 2025, demand for USDT rose. With Treasury reserves depleting, Tether shifted from releasing existing tokens to creating new ones. The $300 million minted on April 24 partially replenished the Treasury and injected fresh liquidity into circulation."

Cumulative Supply Growth by Chain

Total issuance now surpasses $1.07 billion, reaching approximately 64.8% of USDT’s full-year 2018 issuance volume — a staggering pace given it’s only mid-2025.

Despite Ethereum leading in issuance frequency, Omni USDT still dominates circulation, with over $2.5 billion in active supply — about **83% of total USDT流通量**. ERC20 USDT has seen explosive growth, rising from ~$60 million at the start of the year to over $400 million — a **567% increase** — capturing roughly 13% of the market. TRC20 USDT, launched on April 9 and officially issued by April 17, reached **$106.4 million in circulation within a month**, claiming 4% of total USDT supply.

Even at this stage, TRC20 USDT already ranks as the sixth-largest stablecoin by market cap, ahead of DAI, GUSD, EURS, nUSD, and DGX — trailing only Omni USDT, ERC20 USDT, USDC, TUSD, and PAX.

TRON founder Justin Sun previously criticized Ethereum’s limitations: "Omni is outdated — poor wallet support, slow and expensive transactions, lacking scalability. Ethereum isn’t much better. And ERC20 USDT was self-issued by Tether without official collaboration." His comments underscore why alternative chains like TRON are gaining traction for stablecoin deployment.

Market Share Recovery: USDT Regains Over 80% Control

In late 2018, USDT held over 95% market dominance among stablecoins. However, following a trust crisis in October 2018, its share dropped to around 75% by November, continuing into early 2025 when it hovered near 70% on January 1.

Competitors capitalized on this vulnerability:

But the tide turned sharply after Tether’s aggressive 2025 issuance campaign.

As of the latest data:

Combined, USDT now controls over 80% of the stablecoin market, reversing nearly a year of decline.

Meanwhile, competitors saw declines across the board:

Clearly, Tether has leveraged multi-chain expansion to reclaim leadership.

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The Risks of Stablecoin Integration for Blockchain Ecosystems

In March 2025, TRON announced a partnership with Tether to launch TRC20 USDT — a move that opened the floodgates for other blockchains to follow suit. On April 27, Ontology partnered with Paxos to issue PAX on its network.

Such collaborations offer clear benefits:

However, integrating third-party stablecoins introduces systemic risk.

If a DApp relies heavily on a stablecoin for deposits, withdrawals, or internal token economics, any loss of confidence in that stablecoin — such as doubts about reserve backing — could destabilize the entire application. For non-gaming and non-speculative DApps (e.g., lending platforms or payment systems), this dependency can be existential.

Currently, there is no universally accepted audit standard ensuring that all stablecoins maintain full fiat reserves at all times. Therefore, blockchain platforms must carefully assess counterparty risk before embracing external stable assets.

Frequently Asked Questions (FAQ)

Q: What is the difference between 'minting' and 'transfer-based issuance'?
A: Transfer-based issuance involves moving existing USDT from Tether Treasury to exchanges or users. Minting means generating new tokens on-chain, increasing total supply — a sign of rising demand and confidence in expansion.

Q: Why is Omni USDT still dominant despite older technology?
A: Due to historical adoption and deep integration with major exchanges like Binance and Huobi, Omni USDT maintains high liquidity. Many traders still prefer it despite higher fees and slower speeds.

Q: Is Tether’s growth sustainable without full transparency?
A: While regulatory pressure continues to grow, Tether’s dominance persists due to network effects and widespread acceptance. However, long-term sustainability depends on increased audits and legal clarity.

Q: How does multi-chain issuance benefit Tether?
A: By deploying on Ethereum, TRON, and Bitcoin Omni, Tether accesses different user bases — DeFi users on Ethereum, high-frequency traders on TRON — maximizing reach and utility.

Q: Could another stablecoin overtake USDT again?
A: Possible, but unlikely in the short term. Competitors like USDC have regulatory advantages, but lack the global liquidity and exchange support that USDT enjoys.

Q: What should DApp developers consider before using USDT?
A: Evaluate reliance on external tokens, monitor reserve audits, and design economic models that can withstand volatility or depegging events in linked stablecoins.

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