Tether and Circle, the two largest stablecoin issuers, minted a total of $1.25 billion in stablecoins on Tuesday.

This minting activity indicates increased demand for crypto exposure.

The total stablecoin market capitalization has surged by around $30 billion since the beginning of the year.

A notable spike in stablecoin minting occurred on Tuesday, possibly linked to expectations of the SEC approving spot Ethereum exchange-traded funds.

Minting stablecoins involves a KYC check, depositing fiat currency, and ensuring each stablecoin is backed by at least $1 of fiat currency.

Tether and Circle have different criteria for minting stablecoins: Tether allows individual traders, while Circle permits registered businesses.

An increase in minted stablecoins reflects higher demand for crypto exposure, whereas a decrease suggests reduced demand.

Tether's USDT and Circle's USDC are the largest stablecoins, with market capitalizations of $111.3 billion and $32.7 billion respectively.

Overall, stablecoin minting has intensified in 2024, with the total market capitalization rising to $160.6 billion from $130.8 billion at the start of the year.

This increase in stablecoin market capitalization coincides with a general rise in crypto prices.