Tether Mints $1B USDT on Tron, Narrows Gap with Ethereum by $1.4B

Tether, the leading stablecoin issuer, has minted an additional $1 billion in USDT on the Tron network, narrowing the gap with Ethereum. This recent mint brings the total USDT on Tron to $71.4 billion, as reported by the Tether Transparency report. Ethereum currently leads with $72.8 billion in USDT circulation, indicating that Tron is just $1.4 billion away from reclaiming its position as the leading network for USDT.

Historically, Tron has held the lead over Ethereum in USDT circulation between July 2022 and November 2024. However, a significant $18 billion mint on Ethereum temporarily shifted the balance in favor of Ethereum. Other networks, such as Solana, Ton, Avalanche, Aptos, Near, Celo, and Cosmos, also host smaller amounts of USDT, with Solana being the third-largest with $1.9 billion in circulation.

Tether's total circulation has reached a record high of $149.4 billion USDT, marking an 8.6% increase since the beginning of the year. This positions Tether with a dominant market share of 61% in the stablecoin market, according to CoinGecko. Circle, Tether's closest competitor, holds a 25% market share with nearly $62 billion USDC in circulation.

The surge in stablecoin issuance over the past six months has been notable, with stablecoins now representing 8% of the total crypto market capitalization. The United States Treasury Department, in a report from late April, predicted that the stablecoin market could reach $2 trillion by 2028 if regulatory clarity is achieved. This prediction underscores the potential growth and importance of stablecoins in the financial landscape.

Two key pieces of legislation are expected to solidify the position of stablecoins in the US. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act aims to provide clear definitions for “payment stablecoins” and establish reserve rules for stablecoin issuers. Lawmakers in the US Senate are set to vote on this bill before May 26. Additionally, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which governs the approval and supervision of “federally qualified nonbank payment stablecoin issuers,” is also progressing through Congress.

Tether is planning to launch a US-based stablecoin later this year, with the timing contingent on the passage of the relevant legislation. This move highlights Tether's commitment to expanding its stablecoin offerings and adapting to regulatory developments. The stablecoin market's growth and the regulatory environment will continue to shape the future of digital currencies and their integration into the global financial system.