Tether and Circle mint $7B in stablecoins to stabilize post-crash crypto markets

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Artem Shendetskii

22.10.2025

Tether and Circle mint $7B in stablecoins to stabilize post-crash crypto markets — Tether, Circle mint $7B in coordinated push to restore crypto liquidity

On-chain data revealed that Tether and Circle have minted $7 billion in new stablecoins since the October 11 market crash, signaling a coordinated liquidity response to stabilize the crypto ecosystem.

Over the last eight hours, Tether alone has added $1 billion USDT, underscoring surging demand for dollar-pegged liquidity as traders reposition following one of the largest single-day liquidations in 2025, reports Cryptopolitan.

The massive inflow of stablecoins highlights how issuers like Tether (USDT) and Circle (USDC) act as systemic backstops during market stress, providing immediate liquidity to exchanges and market makers. The minting spree follows a $19 billion liquidation cascade that briefly erased trillions in crypto market capitalization and sent Bitcoin below $100,000 for the first time in four months.

Stablecoin issuers bolster confidence and liquidity

The $7 billion mint by Tether and Circle reflects not only market stabilization efforts but also growing institutional confidence in digital assets’ long-term viability. Historically, large-scale mints coincide with market rebounds, as new stablecoins are deployed for dip buying, hedging, and exchange liquidity provisioning.

Konstantin Vasilenko, co-founder of Paybis, told TheStreet Roundtable that stablecoins are transforming global commerce and redefining crypto’s purpose:

“We all thought Bitcoin would become digital cash back in the day. It became digital gold. So stablecoin is now digital cash, more or less.”

Vasilenko added that stablecoins are shifting from speculative tools to real-world payment infrastructure, with daily transaction volumes for payments now nearly matching those for trading. This shift, he said, marks the mainstreaming of stablecoin utility as both retail and corporate users increasingly rely on dollar-backed tokens for cross-border payments and settlements.

Regulators and banks issue systemic risk warnings

Despite the stabilizing role of stablecoins, global regulators remain cautious. The International Monetary Fund (IMF) warned in its October Financial Stability Report that the explosive growth of stablecoins could introduce systemic financial risks. The Fund noted that a loss of confidence in stablecoins could trigger reserve asset liquidations across bank deposits, U.S. Treasuries, and repo markets, potentially forcing central bank intervention.

The IMF also observed that Ethena’s USDe, the third-largest stablecoin, briefly lost its dollar peg during the October 11 crash — a reminder of the market’s fragility during periods of high volatility.

Adding to the concern, Standard Chartered estimated that surging stablecoin adoption could drain up to $1 trillion from emerging market banks over the next three years, as depositors move funds into dollar-based digital assets. Analysts Geoff Kendrick and Madhur Jhar highlighted that stablecoins are increasingly being used in high-inflation economies such as Egypt, Pakistan, Bangladesh, and Sri Lanka, where they offer capital preservation and easier access to global liquidity.

Standard Chartered predicts the stablecoin market will exceed $2 trillion by 2028, with two-thirds of the growth coming from emerging markets.

Outlook: Institutional adoption vs. regulatory headwinds

While the GENIUS Act in the U.S. and similar frameworks abroad aim to bring regulatory clarity, stablecoins are fast becoming systemically important instruments in global finance. With Tether and Circle’s new $7B liquidity injection, the post-crash market appears to be stabilizing, but regulatory scrutiny is intensifying.

Analysts suggest the stablecoin surge is a bullish signal, reflecting institutional preparation for renewed trading activity and a potential crypto market rebound in Q4 2025.

Recently we wrote that Tether has announced a strategic investment in Kotani Pay, a Kenyan cryptocurrency payments startup focused on simplifying cross-border money transfers for unbanked populations across Africa.

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