Tether’s USAT: A Regulated Gambit to Win Over Washington

Tether, the world’s largest stablecoin issuer, has announced the launch of USAT, a U.S.-regulated stablecoin designed for businesses and institutions operating under the U.S. regulatory framework. This move aligns with the company’s broader strategy to deepen its engagement with U.S. regulators and lawmakers, following the re-election of pro-crypto President Donald Trump. The stablecoin, which will be compliant with the GENIUS Act—a newly enacted U.S. regulatory framework—marks a significant departure from Tether’s traditional offshore model and signals its commitment to expanding its footprint in the American financial system.

Bo Hines, former head of the Presidential Council of Advisors for Digital Assets, has been appointed as CEO of Tether U.S., with the company’s U.S. headquarters set to be based in Charlotte, North Carolina. Hines brings extensive regulatory and policy experience to the role, which underscores Tether’s intention to build credibility with U.S. institutions. His appointment is seen as a strategic move to bridge the gap between Tether and American regulators, who have long scrutinized the company for its opaque reserve management and perceived ties to illicit financial activities.

USAT will be issued through Anchorage Digital, a federally regulated crypto bank, and will be backed by U.S. dollars and short-term Treasury securities. The stablecoin will leverage Tether’s proprietary tokenization platform, Hadron, and will be supported by Cantor Fitzgerald as the reserve custodian and preferred primary dealer. This structure ensures full compliance with the reserve requirements outlined in the GENIUS Act, which mandates transparency in stablecoin reserves and requires annual audits for all dollar-backed digital currencies.

The launch of USAT comes at a time of renewed growth in the stablecoin market. According to CryptoQuant, the market cap for stablecoins has increased by approximately 34% in 2025, with Tether’s USDT maintaining its dominance with a market capitalization of nearly $170 billion. Circle’s USDC trails behind with a market cap of around $72.7 billion. Tether’s new offering is positioned to compete directly with USDC and other U.S.-regulated stablecoins, particularly as institutional demand for stablecoins in cross-border payments and remittances continues to rise.

Tether has long maintained that its stablecoin plays a critical role in strengthening the U.S. dollar by providing global access to it through digital means. The company has also invested heavily in U.S. Treasury bonds, with Paolo Ardoino, Tether’s CEO, stating that USDT is already one of the largest holders of U.S. Treasuries. The launch of USAT, he added, reflects the company’s commitment to ensuring that the U.S. dollar remains dominant in the digital economy.

The regulatory environment for stablecoins is evolving rapidly in the U.S. The GENIUS Act, signed into law in July 2025, has established a clear legal pathway for stablecoin issuance and has prompted traditional financial institutions and new entrants to enter the market. Tether’s decision to launch USAT under this framework reflects its strategic pivot toward compliance and its recognition of the growing importance of institutional trust in the digital asset space.