Tether, the company behind the world’s largest Stablecoin USDT, is making a big move into the US market. On Friday, CEO Paolo Ardoino announced the upcoming launch of Stablecoin, a new US-focused Stakescoin called the USAT.
The new project will be run by former White House digital assets official Bo Hines and will serve as CEO of USAT. Unlike Tether’s Global USDT, USAT is made up of a US company headquartered in Charlotte, North Carolina.
What is USAT?
According to the official website, the new Stablecoin is designed to provide users with the digital form of “dollar power.” It will be:
– Fully supported by liquid reserves such as the US dollar and the short-term finance ministry.
– Published in US law, specifically the recently passed Genius Law.
– Immediate peer-to-peer transactions without intermediaries are possible
Unlike USDT issued offshore, the USAT is issued directly from within the United States by Anchorage Digital Bank, the federal charter crypto bank established in 2017. Storage services are provided by Cantor Fitzgerald, a leading Wall Street company.
Why now?
Ardoino explained its launch in response to Circle’s USDC, which was released in a particularly strong IPO, as a response to growing competition in the US market.
“I think it’s a very exciting moment because we were under severe pressure from our competitors who wanted to create an exclusive environment in the US,” Aldoino said at a press event in New York. “We believe Tether is the best product on the market.”
Hines repeated his emotions. “We want people to know that Tether is here. I think our expansion will expand over the next 12-24 months.”
The whole picture
Tether is already playing a major role in global finance. Its flagship Stablecoin, USDT, has a market capitalization of over $169 billion (Coingecko). The company is also one of the largest buyers of US Treasury bills, and as of 2024, it holds value of over $33 billion.
JP Morgan analysts have recently noted that Stablecoin issuers could become the third-largest buyer of US government debt in the coming years.
The US government is getting ridiculously warmed under the Trump administration. The Genius Act, signed into law in July, requires that all ridiculous liquids be supported by high quality liquid assets and publishers make their monthly backup disclosures public.
History of scrutiny and active investigation?
Tether’s US expansion is occurring despite its history of regulatory break-in. In 2021, the company agreed to provide a quarterly report and settled in the New York Attorney General’s Office over allegations that it misunderstood investors about reserves supporting USDT.
More recently, the Wall Street Journal reported that US officials are considering whether Tether violated sanctions or violated Money Prevention 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 pinning projects within US regulations and institutions, Tether clearly shows that he wants to be more than the world’s leading offshore stubcoin issuer.
Personally, I find it difficult to get excited about stubcoin. Of course, I use them regularly and agree with their usefulness – but what I need to be completely satisfied with one is that it retains its value. If some prove that they will definitely do this, I don’t care which one to use. It’s a bit strange to see the competition between coins doing literally the exact same thing.
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author: Oliver Redding
Seattle News Desk / Break the code news