Tether Unleashes USAT: A Federally Regulated Stablecoin to Conquer the US Market

Global stablecoin titan Tether, the powerhouse behind the world’s largest stablecoin USDT, is making a monumental leap into the lucrative United States market. On Tuesday, Tether announced a strategic partnership with Anchorage Digital Bank, America’s first federally chartered crypto bank, to officially launch its new dollar-backed stablecoin, “USAT.” This bold move signals a direct challenge to Circle, the long-standing dominant player in the U.S. stablecoin landscape.

This marks Tether’s inaugural stablecoin product meticulously crafted for the American market. According to the official announcement, USAT is engineered to fully comply with the federal stablecoin regulatory framework established by the U.S. “GENIUS Act.” This adherence represents a significant and deliberate pivot in Tether’s compliance strategy, underscoring its commitment to regulated operations within the U.S.

Unlike USDT, which primarily serves global markets under an offshore operational structure, USAT is directly issued by Anchorage Digital Bank. As a federally regulated entity overseen by the U.S. Office of the Comptroller of the Currency (OCC), Anchorage’s involvement places USAT firmly under federal government supervision, a critical distinction for the U.S. institutional market.

For years, the stablecoin market has been characterized by a clear duopoly: Tether’s USDT commands the global retail and offshore sectors, while Circle’s USDC has cemented its position as the preferred choice for U.S. institutional clients, largely due to its perceived transparency and robust compliance framework.

Now, Tether is setting its sights on breaching Circle’s formidable market stronghold. Leveraging its substantial financial might—with quarterly profits consistently in the billions of dollars—Tether has declared its intention to rapidly scale USAT’s operations. The ambitious goal is to propel USAT’s market capitalization to an astounding $1 trillion within the next five years.

To cultivate trust among U.S. institutions, USAT boasts an “all-star” leadership team and infrastructure. Bo Hines, formerly the Executive Director of the White House Cryptocurrency Commission, has been appointed CEO of Tether USAT. Furthermore, veteran Wall Street financial firm Cantor Fitzgerald has been designated as the reserve custodian and primary dealer. This strategic alignment aims to instill “bank-grade” transparency and asset management standards from day one, attracting significant institutional capital to USAT.

In a press release, Tether CEO Paolo Ardoino articulated the vision behind USAT: “USAT offers institutional investors another compelling option: a made-in-America, dollar-backed token. Over the past decade, USDT has unequivocally demonstrated the global trust, transparency, and utility that digital dollars can provide. USAT further extends this mission by delivering a federally regulated product specifically designed for the discerning U.S. market.”

Upon its initial launch, USAT will be accessible across a suite of leading trading platforms and payment channels, including Kraken, OKX, Bybit, Crypto.com, and MoonPay.