USDT Circulating Supply Blows Past $150 B All-Time High

Tether’s flagship stablecoin, USDT, surged past the unprecedented milestone of $150 billion in circulating supply on June 4, riding a wave of renewed demand for dollar-backed tokens. According to Tether’s transparency dashboard, total USDT issuance climbed by $8 billion over the past month, reflecting both macroeconomic uncertainty and institutional adoption of crypto payment rails.

Supply trend

USDT supply has expanded more than 65% since January, when the market cap stood at $90 billion. The token’s trajectory accelerated in April, when Chinese crypto exchanges resumed large USDT minting following renewed offshore trading volume. Daily minting peaked at $1.2 billion on May 10, the highest since early 2022.

On-chain data from CoinMetrics shows that over 75% of USDT issuance occurred on Ethereum, with the remainder split across Tron (15%), Solana (6%), and BNB Smart Chain (4%). This multi-chain distribution underscores Tether’s strategy of ubiquitous liquidity provisioning across blockchain ecosystems.

Drivers of growth

Several factors have fueled USDT’s record issuance:

• Institutional pathways: Payment processors and treasury departments are increasingly using USDT for cross-border settlements, citing faster finality and lower fees compared to traditional banking rails.
• Emerging markets demand: Regions facing currency devaluation— including Turkey, Argentina, and Nigeria—have seen elevated USDT inflows as users hedge local fiat risk.
• DeFi integration: USDT remains the top collateral asset in decentralized lending protocols, accounting for 30 billion in DeFi loans outstanding.

Market impact

The milestone has broader market implications. Stablecoin supply growth often presages crypto risk-on cycles as new liquidity enters the market. In May, CoinShares reported $500 million of net inflows into crypto funds, suggesting that USDT minting is translating into fresh capital for Bitcoin and altcoins.

Yet, some analysts caution that rapid stablecoin expansion can signal capital rotation rather than net new fiat inflows. “We’re watching the correlation between USDT supply and exchange balances,” says Messari researcher Elena Morales. “If balances rise sharply, it points to selling pressure; if they’re withdrawn, it suggests accumulation.”

Regulatory outlook

Tether has faced recurring scrutiny over reserve transparency and regulatory compliance. The recent U.S. Treasury stablecoin report highlighted concerns around systemic risk if stablecoin reserves are not fully segregated and audited. In response, Tether announced quarterly independent attestations covering all USDT-backed assets, with the next report due in Q3 2025.

Meanwhile, the EU’s forthcoming Markets in Crypto-Assets (MiCA) framework will classify stablecoin issuers under a “significant” regime, requiring higher capital buffers and issuer governance. Tether’s global footprint means MiCA compliance will be a critical factor in its operations from 2026 onward.

Conclusion

USDT’s breakthrough at $150 billion underscores the enduring appeal of dollar- pegged tokens as both a hedge and a utility asset. While issuance growth supports market liquidity, it also raises questions about reserve stewardship and regulatory safeguards.

As stablecoin volumes continue to climb, stakeholders—from regulators to DeFi protocols—will closely monitor reserve disclosures, market flows, and the evolving policy landscape. For now, USDT remains the backbone of crypto liquidity, powering the next chapter of digital asset adoption.