Tether Sets New Record for USDT Printing, Reserve Growth, and Netflow, Suggesting Strong Buying Potential for Q4 Rally

Tether has increased USDT printing in September, pushing its market capitalization to a new record of $173 billion. The volume of USDT deposited on exchanges also rose. Data from CryptoQuant shows that USDT reserves on exchanges reached an all-time high of 48 billion USDT, and netflow reached a new high. This may indicate renewed demand for USDT and potential buying potential for Bitcoin. Historically, periods of accelerated Tether issuance have preceded major Bitcoin rallies, making Q4 a strong quarter for the cryptocurrency market.

Tether has significantly increased its USDT printing in September, pushing its market capitalization to a new record of $173 billion. The volume of USDT deposited on exchanges also rose, reaching an all-time high of 48 billion USDT. Data from CryptoQuant shows that netflow also reached a new high, indicating renewed demand for USDT and potential buying potential for Bitcoin. Historically, periods of accelerated Tether issuance have preceded major Bitcoin rallies, making Q4 a strong quarter for the cryptocurrency market.

Analysts suggest that the increase in USDT printing is part of Tether's strategy to maintain liquidity and prepare for future growth. Tether's USDT is a stablecoin pegged to the US dollar, making it a popular choice for cryptocurrency trading and investment. The company's recent profit surge, with $4.9 billion in Q2 profits, has drawn attention to its financial performance Tether Reportedly Raising $15B–$20B for 3% Stake^[2].

Tether's USDT0, a cross-chain stablecoin introduced using the LayerZero OFT standard, has also played a role in expanding USDT's reach. The company transferred more than $1 billion USDT to USDT0 in anticipation of the mainnet launch, granting immediate and substantial USDT liquidity Plasma has successfully transferred over 1 billion USDT to USDT 0 in preparation for the mainnet launch.^[1].

The increased USDT printing comes as Tether seeks to raise between $15 billion and $20 billion in fresh capital. The deal would entail the sale of roughly 3% of its equity, potentially valuing the company at almost $500 billion Tether Reportedly Raising $15B–$20B for 3% Stake^[2]. If completed, this fundraising would put Tether in the list of the most valuable private companies in the world.

The fundraising move is part of Tether's broader strategy to consolidate its position as the dominant player in the stablecoin space. The firm currently issues the world's largest stablecoin, with a circulating supply of over $120 billion. Its scale has given it a central role in global digital finance, but it is also facing questions around transparency, oversight, and regulatory alignment.

The result of this process may also determine the broader stablecoin industry. A successful raise could help spur more investment throughout the digital asset infrastructure. Conversely, delays or scaled-back commitments could underscore investor caution with respect to governance practices in the industry. Either way, the deal highlights the growing importance of stablecoins in the developing financial system.