Tether, the company behind the world’s largest stablecoin USDT, is making a big move into the American market. On Friday, CEO Paolo Ardoino announced the upcoming launch of a new U.S.-focused stablecoin called USAT, expected to go live by the end of the year.
The new project will be run by Bo Hines, a former White House digital assets official, who will serve as USAT’s CEO. Unlike Tether’s global USDT, USAT is being structured as a U.S. company, with headquarters in Charlotte, North Carolina.
What is USAT?
According to its official website, the new stablecoin is designed to give users the “power of the dollar” in digital form. It will be:
- Fully backed by liquid reserves such as U.S. dollars and short-term Treasuries
- Issued under U.S. law, specifically the recently passed GENIUS Act, which created the first federal regulatory framework for stablecoins
- Capable of instant, peer-to-peer transactions without intermediaries
Unlike USDT, which is issued offshore, USAT will be issued directly from within the U.S. by Anchorage Digital Bank, a federally chartered crypto bank founded in 2017. Custody services will be provided by Cantor Fitzgerald, a major Wall Street firm.
Why Now?
Ardoino described the launch as a response to growing competition in the U.S. market, particularly from Circle’s USDC, which recently went public in a blockbuster IPO.
“I think it’s a very exciting moment because we were under severe pressure from competitors that want to create a monopolistic environment in the United States,” Ardoino said at the New York press event. “We believe that Tether is the best product in the market.”
Hines echoed the sentiment: “We want people to know that Tether is here to participate in the U.S. economy in a huge way. I think our expansion will be exorbitant over the course of the next 12 to 24 months.”
The Bigger Picture
Tether already plays a massive role in global finance. Its flagship stablecoin, USDT, has a market capitalization of more than $169 billion (CoinGecko). The company is also one of the largest buyers of U.S. Treasury bills, holding more than $33 billion worth as of 2024.
Analysts at J.P. Morgan recently noted that stablecoin issuers could become the third-largest buyers of U.S. government debt in coming years — an eye-opening prospect for both Wall Street and Washington.
The U.S. government has been warming up to stablecoins under the Trump administration. The GENIUS Act, signed into law in July, requires that all stablecoins be backed by high-quality liquid assets and that issuers publish monthly reserve disclosures.
A History of Scrutiny, and an Active Investigation?
Tether’s U.S. expansion comes despite its history of regulatory run-ins. In 2021, the company settled with the New York Attorney General’s office over allegations that it misled investors about the reserves backing USDT, agreeing to provide quarterly reports.
More recently, The Wall Street Journal reported that U.S. authorities were looking into whether Tether had violated sanctions or anti-money-laundering rules. Ardoino denied that the company is under investigation.
What’s Next
If USAT launches on schedule, it will directly challenge Circle’s USDC for dominance in the American stablecoin market. By anchoring the project within U.S. regulations and institutions, Tether is clearly signaling that it wants to be more than just the world’s leading offshore stablecoin issuer.
Personally, I find stablecoins hard to get excited about. Of course, I use them regularly and agree with their usefulness - but all I need to be fully satisfied with one is that it holds its value. If several prove to do this reliably, I don't care which one I use. It's just a bit odd seeing competition between coins that literally do the exact same thing.
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Author: Oliver Redding
Seattle Newsdesk / Breaking Crypto News
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