Tether and Circle Mint $7B in Stablecoins to Stabilize Post-Crash Market
The cryptocurrency market faced severe turbulence on October 11, 2025, as a sharp crash triggered widespread volatility. Tether and Circle responded by minting a combined $7 billion in stablecoins, aiming to restore liquidity and confidence.
Stablecoins, pegged to fiat currencies like the U.S. dollar, serve as a critical hedge during market downturns. This aggressive minting strategy highlights their role as shock absorbers—providing traders and institutions with immediate liquidity to navigate the sell-off.
The MOVE underscores a broader trend: stablecoin issuers now act as de facto central banks in crypto. Their ability to rapidly expand supply during crises mitigates contagion risks, though questions linger about long-term systemic reliance.
