Tether Expands U.S. Institutional Offerings as GENIUS Act Drives Compliance for $162B Stablecoin

Tether, the issuer of the world’s largest stablecoin USDT, is accelerating its plans to reenter the U.S. market under a strategy focused on institutional clients and regulatory compliance. CEO Paolo Ardoino confirmed to Bloomberg Television that the company’s U.S. expansion is “well underway,” with efforts to align with the newly enacted GENIUS Act, which mandates annual audits for stablecoin issuers with over $50 billion in market capitalization. Tether, which has a $162 billion market cap, plans to seek classification as a foreign stablecoin issuer and has appointed a new CFO to expedite a full audit by one of the Big Four accounting firms. This follows the company’s previous reliance on quarterly attestations from BDO Italia, a practice it will phase out to meet stricter U.S. standards [1][4].

The move comes as Tether faces stiff competition from U.S. banks such as JPMorgan and Citigroup, which are developing their own regulated stablecoins. Ardoino acknowledged the challenge but emphasized Tether’s technological edge and $13 billion net profit from 2023 as key advantages. A new U.S.-focused version of USDT, designed for high-efficiency institutional payments, is slated for early 2026. This iteration aims to capture cross-border and domestic transaction markets, leveraging the GENIUS Act’s framework to foster innovation while ensuring compliance [1][4].

Regulatory alignment remains central to Tether’s strategy. The company has frozen $2.9 billion in USDT linked to illicit activities, including $225 million in collaboration with the U.S. Department of Justice this year. Tether’s transparency measures, such as blockchain traceability and rapid asset freezes, have supported 275 law enforcement agencies across 59 countries. These efforts include recent actions against wallets tied to Garantex, Bybit, Klever Wallet, and Gaza-based BuyCash, which was suspected of financing terrorism [1].

Despite its U.S. ambitions, Tether continues to prioritize emerging markets, where USDT is used as an alternative to unstable local currencies. Ardoino highlighted the importance of these regions for growth, particularly as developing economies adopt crypto to bypass outdated banking systems. The company also manages over $13.7 billion in venture investments, signaling a broader diversification strategy beyond stablecoins [6].

Analysts note that Tether’s decision to remain private, rather than pursue a public listing, allows operational flexibility. This approach contrasts with competitors like Circle, which faces heightened scrutiny following its public listing. Tether’s quarterly reserve disclosures, including reserves held in Bitcoin and secured loans, aim to rebuild trust with institutions wary of past legal challenges and opaque disclosures [4].

While the company’s private structure offers agility, critics question its long-term accountability. Tether’s ability to navigate regulatory complexities and maintain market dominance could reshape the stablecoin landscape as the U.S. crypto report, expected in late July, outlines policy directions. The firm’s strategic alignment with U.S. policy positions it to capitalize on the growing institutional demand for digital settlement tools, though challenges remain in proving sustained compliance and transparency [1][4].

Source:

[1] [Tether Gains Momentum in U.S. Expansion as GENIUS Act Drives Institutional Stablecoin Push](https://www.ainvest.com/news/tether-gains-momentum-expansion-genius-act-drives-institutional-stablecoin-push-2507)

[4] [CEO Confirms Tether’s U.S. Strategic Expansion Is Underway](https://crypto-economy.com/ceo-confirms-tethers-u-s-strategic-expansion-is-underway/)

[6] [USDT’s Strategic Expansion: Tether Invests $13.7B in...](https://www.btcc.com/en-CA/square/USDT%20News/681036)