Tether announced Friday that it is entering the US market with a new stablecoin, USAT. Former White House crypto official Bo Hines is expected to be CEO of the new venture.
“I am honored to lead USAT as we prepare for its launch, creating a U.S.-regulated dollar-backed stablecoin designed to strengthen America’s role in the global economy,” Hines said.
The move marks Tether’s official entry to the US, and comes just a few months after Congress passed the GENIUS Act, a US stablecoin regulatory framework. The bill, signed into law by President Trump in July, gives the Office of the Comptroller of the Currency oversight of prospective and approved stablecoin issuers.
The stablecoin issuer has established a notable presence in Washington, DC since President Trump took office. However, USAT is set to be headquartered in Charlotte, NC, Hines said Friday morning.
USAT is targeting an end-of-year launch, Hines and Ardoino said onstage at an event announcing the launch.
Both Cantor Fitzgerald — which has a relationship with Tether — and Anchorage are partners in the launch. Anchorage, which recently became a federally chartered stablecoin issuer, will handle issuance for USAT, while Cantor will custody its treasury reserves.
Tether announced the move during an event held at the spy-focused Spyscape museum in Manhattan. Hines, Apollo Global Management partner Christine Moy, and Multicoin Capital managing partner Kyle Samani were among those in attendance. As museum staff packed up “Detox Sunshine” and “Clean Green Antioxidant” juice containers, Tether CEO Paolo Ardoino stood up to speak.
Tether is not just a stablecoin company, it’s a stable company, Ardoino said, detailing how the digital dollar brings stability to its user base around the world.
Tether’s USDT is the largest stablecoin with a market cap of over $160 billion, per Blockworks Research. Stablecoins have surpassed a total market cap of over $250 billion.
“Tether holds dominant market share and exhibits supernormal margins and profits. These margins are opportunities for other competitors, which should attract new entrants in the stablecoin issuer market,” Blockworks Research analyst Luke Leasure wrote back in March.
Since then, the stablecoin market has continued to grow, and a number of traditional financial entities have expressed interest in stablecoins, including Morgan Stanley.
Read more: Can the Genius Act save banks from stablecoins?
Ardoino told CNBC back in May that it was considering a domestic version of USDT for American users.
“A domestic stablecoin would be different from the international stablecoin,” Ardoino said in May, before the GENIUS Act was passed.
In 2021, Tether previously settled with the New York attorney general’s office for $18.5 million over allegations that it was not honest about its reserves. It also settled with the CFTC over allegedly making “misleading statements.”
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Source: https://blockworks.co/news/tether-enters-us-market-with-usat-stablecoin
