Tether and Circle inject fresh liquidity post-market crash

On-chain data showed on Wednesday that Tether and Circle have now minted $7 billion in stablecoins after the 1011 market crash. The USDT issuer has minted an additional $1 billion USDT over the last 8 hours.

The surge in stablecoin activity suggests that key players, such as Tether and Circle, are stepping in to stabilize liquidity after the October 11 (1011) crypto market crash. Tether, the largest stablecoin issuer by market cap, often mints large amounts of USDT to meet demand, with its latest mint suggesting a strong need for stable liquidity during periods of market distress.

Increased stablecoin mint helps soften blow of market crashes

Tether(@Tether_to) just minted 1B $USDT again 6 hours ago!#Tether and #Circle have minted $7B in stablecoins after the 1011 market crash.https://t.co/bcw2rlrHIw pic.twitter.com/yb6OxxU28z

— Lookonchain (@lookonchain) October 22, 2025

The $7 billion minted by Tether and Circle reflects growing confidence in the resilience of the crypto market. The increase in capital from stablecoins is typically used for initiatives that help mitigate the impact of market crashes, such as buying dips, hedging, or providing exchange liquidity.

The large-scale stablecoin mints by Tether and Circle also indicate bullish signals, suggesting that both stablecoin issuers are preparing for increased market activity in the aftermath of the crash. The move is considered institutional preparation for high-volume trading or potential market rebounds. 

Konstantin Vasilenko, co-founder of Paybis, spoke with TheStreet Roundtable and said stablecoins are at the center of the shift from speculation to utility in crypto adoption. He also acknowledged that stablecoins are transforming how companies transact globally.

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

–Konstantin Vasileko, Co-Founder of Paybis.

Vasilenko said stablecoin adoption will require businesses to adopt dollar-backed digital assets, allowing retail to start using them. He also noted that stablecoin transactions are increasingly used in payments rather than trading.

Vasilenko revealed that the daily volumes of stablecoins used in trading are now very close to stablecoins used by businesses in payments. He said it means stablecoins are currently being adopted as a medium of payment.

Despite the increased minting of stablecoins, the International Monetary Fund warned earlier this month that the stablecoin market could become a source of systemic risk. The fund acknowledged in its latest Financial Stability Report that stablecoins have ballooned in scale and influence. However, the IMF warned that a drop in stablecoin confidence could lead to the liquidation of reserve assets, potentially causing ripples through bank deposits, government bonds, and repo markets, which might compel central banks to intervene to stabilize conditions.

The Fund also believes that the adoption of stablecoins could limit central banks’ ability to control inflation or liquidity, as dollar-backed digital assets may compete with national currencies. The IMF noted that Ethena, the world’s third-largest stablecoin, had briefly lost its dollar peg during the 1011 crash. The Financial Stability Board promised to maintain tighter oversight, reiterating similar concerns from the European Central Bank, the Bank for International Settlements, and the International Organization of Securities Commissions, which signals that stablecoins are nearing adoption in the global financial system.

Standard Chartered believes stablecoins pose a risk to financial institutions

Standard Chartered also revealed earlier this month that a surge in stablecoin use could drain as much as $1 trillion from emerging market banks over the next three years. Analysts Geoff Kendrick and Madhur Jhar wrote that dollar-backed digital assets are offering developing economies an alternative to local banks, thereby accelerating a post-financial crisis shift of core banking functions into the non-bank sector.

StanChart revealed that stablecoin adoption has increased in countries with weak currencies and high inflation, including Egypt, Pakistan, Bangladesh, and Sri Lanka, where deposit flight risks are acute. The bank also stated that stablecoins attract users who prioritize capital preservation, even without offering yields, which is now also barred under the U.S. GENIUS Act. 

Standard Chartered predicts the stablecoin market could surge to $2 trillion by 2028. The bank also believes that two-thirds of the increase will come from emerging markets.

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