Tether Plans US Institutional Stablecoin Amid Regulatory Push
2min read Tether, the issuer of the world's largest stablecoin USDT, has announced plans to launch a new US-based stablecoin specifically designed for institutional clients. This development comes as US lawmakers are making progress on regulatory frameworks for digital assets, with President Donald Trump urging for legislation to be passed by August.
Tether CEO Paolo Ardoino revealed that the company is exploring the creation of a US-based, institutional-grade stablecoin. This new offering would differ from Tether’s existing stablecoins, which are primarily used for trading and supporting financial inclusion in emerging markets. The new stablecoin would be tailored to meet the needs of large-scale, regulated institutions with different infrastructure requirements, focusing on enabling faster settlements between banks.
Currently, Tether does not offer its products to US customers. However, this policy could change if favorable regulations are established, allowing Tether to expand its services to the US market. The company is also working toward obtaining a full audit from a Big Four accounting firm, which would address ongoing scrutiny regarding the transparency of its stablecoin reserves.
Two key bills are moving through Congress: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the Senate. President Trump has urged lawmakers to pass stablecoin legislation by August, indicating a push for regulatory clarity in the digital asset space.
The regulatory environment appears to be shifting under the Trump administration. The Securities and Exchange Commission (SEC) has reportedly paused or dismissed most legal actions against cryptocurrency entities. The SEC’s Division of Corporate Finance recently clarified that stablecoins are not classified as securities, alleviating some regulatory burdens that existed under the previous administration.
Tether has faced ongoing scrutiny for not providing a full independent audit of its stablecoin reserves. Instead, the company releases quarterly attestations signed by BDO Italia. In response to these concerns, Tether recently hired Simon McWilliams as its new chief financial officer. McWilliams will lead efforts toward securing a full audit from a Big Four accounting firm, which would bring Tether in line with rival Circle, issuer of USDC, which has had its financials audited by Deloitte since 2022.
Ardoino has stated that obtaining such an audit is a “top priority” and that discussions are already underway. This move would enhance Tether’s credibility and transparency, addressing concerns from regulators and institutional investors. The company reported $13 billion in profits last year, demonstrating strong interest in stablecoins despite broader market challenges.
Industry experts emphasize the need for a cohesive federal framework for stablecoins. Without such a framework, it remains challenging for financial services firms and international enterprises to adopt stablecoins on a larger scale. The cryptocurrency landscape in the United States continues to evolve, with the President’s stated ambition to position the US as a leader in the digital asset space, regulatory clarity for stablecoins may soon become a reality.
