Tether Plans U.S. Market Re-entry With New Stablecoin

Tether, the world's largest stablecoin issuer, is reportedly planning to re-enter the U.S. market with a new dollar-pegged stablecoin. This move comes as the company seeks to expand its presence in the U.S., which has seen significant regulatory changes. Tether's CEO, Paolo Ardoino, confirmed these plans in an interview, stating that the new stablecoin will be different from its international USDT offering and is expected to launch by the end of the year.

The new stablecoin is anticipated to compete directly with key players in the U.S. stablecoin market. Tether's entry into the U.S. market follows a period of increased engagement with lawmakers and policy influencers. Ardoino has been actively participating in crypto industry events and has engaged in meetings with lawmakers, emphasizing the company's commitment to legal cooperation and transparency.

Tether's goal of entering the U.S. market may create a more competitive cryptocurrency ecosystem, with increased transparency and reputable financial support. The company has made notable developments on previous issues revolving around reserves, with its most recent attestation report indicating that it now has approximately $120 billion in U.S. Treasuries and total assets amounting to at least $149.27 billion with $143.68 billion in liabilities, creating at least a $5.6 billion surplus. Tether's partnership with Cantor Fitzgerald to oversee its Treasuries gives the company some institutional credibility.

Ardoino addressed Tether’s reserve assets, a point of contention for the firm in the past, as it agreed to pay $18.5 million to New York in 2021 after it was alleged that it lied about its reserves. According to Ardoino, Tether is very close to having $120 billion in U.S. Treasuries in its reserves and has $7 billion in excess equity within the company’s capital. This, he claims, is unprecedented and he wishes financial institutions in the traditional financial system would at least try to copy Tether to provide better products for their consumers.

The company's quarterly growth metrics also show increasing adoption, with approximately 46 million new USDT wallets created during the most recent reporting period, a 13% increase from the previous quarter. This indicates growing user confidence despite past regulatory challenges. Ardoino has also expressed optimism about the future of Tether, projecting a 10x growth for the company in the next five years and mentioning that Tether products could reach almost 3 billion people. The stablecoin's growth could also be good news for the broader crypto ecosystem, as 37% of global users use USDT for savings, with an average daily volume of 30 billion.