Tether Launches the USAT Stablecoin for the U.S. Market

TL;DR

• Stablecoin issuer Tether has unveiled the USAT stablecoin for the United States market.

• The company has also hired Bo Hines as head of its American division.

Tether Unveils USAT Stablecoin for the U.S. Market

Tether, the leading stablecoin issuer in the world, announced over the weekend that it will launch  a U.S.-regulated, dollar-backed token called USAT. 

According to its blog post, Anchorage Digital, a federally regulated crypto bank, will serve as USAT’s issuer. The company has also obtained the services of Cantor Fitzgerald to manage the reserves. 

USAT stablecoin is set to launch later this year. Tether’s CEO revealed this information during a speech at an event in New York on Friday. 

In addition to that, Tether has also hired Bo Hines,  a lawyer and former director of the White House Crypto Council advising President Donald Trump on crypto policies, to head its new U.S. entity. Tether stated that,

“USA₮ will be established as a U.S.-regulated stablecoin, designed to provide businesses and institutions with a digital alternative to cash and traditional payment rails. Governed by strict regulatory standards and backed by transparent reserves, USA₮ will set a new benchmark for compliance and accessibility for the U.S. stablecoin industry.”

This latest development comes as Tether, the issuer of the USDT stablecoin, aims to compete with U.S.-based issuers such as Circle (CRCL), Paxos, and Ripple. The stablecoin market has become one of the most competitive in the crypto space, with companies such as PayPal and others also looking to establish themselves as dominant players.

Analysts expect the stablecoin market to hit $1 trillion over the next few years from its current $270 million market cap. The passing of the GENIUS Act in the United States also paved the way for the expansion of this industry, as stablecoins are now regulated in the country. 

Tether’s USDT is the leading stablecoin in the world, with a market cap of nearly $170 billion. While commenting on his appointment, Hines stated that, 

"By building USAT with compliance, transparency, and innovation at its core, we are ensuring that the dollar remains the foundation of trust in the digital asset space."

Hines added that Anchorage and Cantor will be shareholders in the newly-established U.S. entity and share the revenue from the USAT token's reserve assets. However, the details of the partnership are yet to be finalized.

Tether’s new U.S. entity will operate from Charlotte, North Carolina, with the company’s international headquarters still in El Salvador.