Tether Holdings SA announced the launch of a new US-regulated stablecoin, called USAT, which will be minted and redeemed through Anchorage Digital Bank NA’s stablecoin issuance platform.
The new token will be backed by reserves overseen by Cantor Fitzgerald LP, which already manages the assets behind Tether’s USDT stablecoin. Bo Hines, a former White House crypto official, has been appointed to run the venture.
Compliance and Structure
Tether’s flagship token, USDT, is the world’s largest stablecoin, pegged to the US dollar with about $170 billion in circulation. Its reserves include cash-equivalent assets such as short-term US Treasuries, but also Bitcoin, secured loans, and precious metals. These asset types are not compliant with US regulations, prompting Tether to establish a separate token for the US market.
USAT will be structured to meet the requirements of the Genius Act, a law passed by US lawmakers earlier this year that introduced federal rules for stablecoin issuers. The legislation defines what types of assets issuers can hold in reserves and sets standards for regulatory compliance.
Leadership and Oversight
Hines, who joined Tether in August after serving as head of former President Donald Trump’s digital assets advisory council, will oversee the US venture.
Tether previously paid a $41 million fine in 2021 to settle allegations with US regulators regarding misstatements about its reserves. The launch of USAT marks a renewed expansion into the US market, several years after the company stopped servicing US-based customers directly.
Market Competition
The move is expected to intensify competition between Tether and its main rival, Circle Internet Group Inc., issuer of the second-largest stablecoin USDC. Circle, which went public in June, has historically promoted its strict compliance with US regulations and global licenses as a competitive advantage with institutional investors.
The new token will be backed by reserves overseen by Cantor Fitzgerald LP, which already manages the assets behind Tether’s USDT stablecoin. Bo Hines, a former White House crypto official, has been appointed to run the venture.
Compliance and Structure
Tether’s flagship token, USDT, is the world’s largest stablecoin, pegged to the US dollar with about $170 billion in circulation. Its reserves include cash-equivalent assets such as short-term US Treasuries, but also Bitcoin, secured loans, and precious metals. These asset types are not compliant with US regulations, prompting Tether to establish a separate token for the US market.
USAT will be structured to meet the requirements of the Genius Act, a law passed by US lawmakers earlier this year that introduced federal rules for stablecoin issuers. The legislation defines what types of assets issuers can hold in reserves and sets standards for regulatory compliance.
Leadership and Oversight
Hines, who joined Tether in August after serving as head of former President Donald Trump’s digital assets advisory council, will oversee the US venture.
Tether previously paid a $41 million fine in 2021 to settle allegations with US regulators regarding misstatements about its reserves. The launch of USAT marks a renewed expansion into the US market, several years after the company stopped servicing US-based customers directly.
Market Competition
The move is expected to intensify competition between Tether and its main rival, Circle Internet Group Inc., issuer of the second-largest stablecoin USDC. Circle, which went public in June, has historically promoted its strict compliance with US regulations and global licenses as a competitive advantage with institutional investors.