Tether Aims to Expand USDT Supply Tenfold Under New U.S. Stablecoin Law

Tether Holdings SA, the world’s largest stablecoin issuer, has outlined a strategic re-entry into the U.S. market under the newly enacted GENIUS Act, with a focus on institutional clients and regulated stablecoin solutions. CEO Paolo Ardoino emphasized during a Bloomberg Television interview that the company is “well on its way to establishing a domestic strategy” targeting U.S. institutional markets, leveraging the Act’s framework to enhance efficiency in domestic payments, interbank settlements, and trading [1]. The legislation, signed into law by President Donald Trump, mandates full reserve backing for stablecoins, routine audits, and stringent anti-money laundering (AML) compliance, positioning Tether to align its USDT with federal standards [2].

Ardoino acknowledged past criticisms regarding delayed audits but affirmed the firm’s commitment to meeting the new requirements, which he believes could catalyze USDT’s adoption. Tether’s USDT currently circulates at $162 billion, outpacing Circle’s USDC ($64.7 billion) [1]. The CEO projected a potential tenfold increase in USDT supply, reaching over $1 trillion, contingent on regulatory compliance and operational adjustments [2]. This growth would hinge on successful implementation of the GENIUS Act’s mandates, including full reserve audits and AML protocols, which Tether aims to integrate into its operations.

The legislation’s emphasis on cross-border payments and institutional use aligns with Tether’s broader goals to enhance financial infrastructure. Ardoino highlighted the efficiency of stablecoins in interbank settlements, where traditional systems often face delays and high costs. By offering a regulated, transparent alternative, Tether seeks to address gaps in payment speed and liquidity for institutions. The company has no plans to pursue a public listing, instead prioritizing emerging markets where it maintains a competitive edge [1].

A partnership with Rezolve AI, a firm with a $150 billion market cap, further underscores the GENIUS Act’s potential to normalize cryptocurrency in everyday transactions. Rezolve AI’s Brain Suite platform, integrated with Microsoft Azure and Google Cloud, aims to connect retailers with the stablecoin economy, targeting the $30 trillion retail payments sector [3]. This collaboration reflects the broader implications of the legislation in expanding stablecoin utility beyond institutional markets.

Despite regulatory clarity under the GENIUS Act, challenges persist. Tether must navigate full reserve audits, AML compliance, and ongoing federal reporting, with Ardoino’s growth projections contingent on successful implementation. The company’s history of regulatory scrutiny—particularly around transparency—raises questions about its ability to maintain trust in the U.S. market. Investors are advised to monitor Tether’s compliance progress and the Federal Reserve’s oversight of its operations [3].

The market response to Tether’s re-entry remains cautious. While its dominance in stablecoin circulation suggests strong potential, historical concerns about transparency and audit practices linger. The GENIUS Act’s framework offers a blueprint for other stablecoin issuers navigating evolving regulations, but Tether’s success will depend on its ability to demonstrate compliance and operational resilience.

Sources:

[1] [Tether CEO Says Stablecoin Issuer Is Making Plans to Do Business in US] [https://www.bloomberg.com/news/articles/2025-07-23/tether-ceo-says-stablecoin-issuer-is-making-plans-to-do-business-in-us]

[2] [Tether Could Potentially Expand USDT Supply Tenfold Amid New Federal Stablecoin Regulations] [https://en.coinotag.com/tether-could-potentially-expand-usdt-supply-tenfold-amid-new-federal-stablecoin-regulations/]

[3] [Rezolve AI and $150B Tether Aligned as U.S. Stablecoin Law Ushers in] [https://www.stocktitan.net/news/RZLV/rezolve-ai-and-150b-1-tether-aligned-as-u-s-stablecoin-law-ushers-in-wlw9ghzz29m8.html]