Tether Launches U.S. Stablecoin for Institutions Under GENIUS Act as USDT Reaches $162 Billion Volume

Tether is accelerating its U.S. market integration with the development of a new stablecoin tailored for banks, trading firms, and large corporations, signaling a strategic shift under the GENIUS Act signed by President Donald Trump. This move aligns with the U.S. regulatory framework that now mandates full reserve backing, anti-money laundering (AML) compliance, and regular audits for stablecoin issuers. The company’s CEO, Paolo Ardoino, described the legislation as a “critical enabler” for institutional adoption, emphasizing Tether’s intent to become a regulated financial leader in the U.S. market [1].

The new stablecoin, distinct from Tether’s existing USDT token—which remains the most actively traded digital asset with $162 billion in circulation as of July 2025—will prioritize institutional use cases such as cross-border payments and tokenized financial systems. Unlike USDT, the upcoming product will operate under a fully licensed framework, adhering to stringent reserve requirements and transparency standards. Ardoino noted this differentiation is key to building trust and compliance, particularly after past scrutiny over USDT’s reserve clarity [2].

Tether’s U.S. expansion contrasts with its public-focused approach. The company has opted against a public listing, instead prioritizing private growth through institutional partnerships. Ardoino highlighted that maintaining control over operations allows Tether to adapt swiftly to evolving regulations and scale in markets like the U.S. and developing economies. This strategy includes investments in infrastructure, such as partnerships with Rezolve AI to integrate stablecoins into the $30 trillion retail payments sector using cloud technologies from Microsoft and Google [3].

The firm’s broader strategy also involves diversifying beyond cryptocurrency, with investments in mining, biotech, and media sectors. These initiatives, coupled with its U.S. regulatory compliance, align with the GENIUS Act’s goals of fostering transparent and robust financial systems. Tether’s partnership with Bitdeer, a major mining company, underscores its commitment to strengthening operational resilience [4].

Analysts view Tether’s pivot as a response to the regulatory clarity provided by the GENIUS Act, which has transformed the U.S. stablecoin landscape. By focusing on institutional clients and adhering to compliance standards, Tether aims to position itself as a benchmark for regulated digital finance. The company’s $162 billion network volume, combined with its institutional-grade product, could redefine stablecoin adoption in 2025 [5].

Tether’s approach diverges from competitors like Circle, whose USDC token operates under a public model. Ardoino reiterated that Tether’s private structure enables flexibility in navigating regulatory shifts, a critical factor as global stablecoin frameworks continue to evolve. The firm’s emphasis on partnerships and controlled growth reflects a long-term vision to integrate digital assets into mainstream financial systems while maintaining operational independence [6].

As Tether transitions from a global retail-focused entity to a U.S.-centric institutional player, its new stablecoin could set a precedent for compliance-driven innovation. The GENIUS Act’s role in facilitating this shift highlights the interplay between regulatory clarity and market dynamics, potentially reshaping the stablecoin ecosystem in the years ahead.

Sources:

[1] Tether CEO Paolo Ardoino interview with Bloomberg, as reported by CoinMarketCap.

[2] Tether’s July 2025 circulating USDT volume, sourced from company disclosures.

[3] Tether and Rezolve AI partnership details, outlined in company press materials.

[4] Tether’s Bitdeer investment and cross-sector investments, as per public filings.

[5] Analysts’ assessments of Tether’s U.S. market positioning and regulatory alignment.

[6] Tether’s strategic differentiation from public-listed stablecoin rivals, per CEO statements.

URL: [1] [BREAKING: Tether Building U.S. Stablecoin for Banks After GENIUS Act Signed] (https://coinmarketcap.com/community/articles/68821a61e3dcda6ed6355931/)