Tether is gearing up to launch a dollar-backed stablecoin regulated in the U.S. Named USAT, this new stablecoin follows the establishment of the recently announced Stablecoin Law, also referred to as the Genius Act. The goal is to offer companies and institutions a digital alternative to cash and traditional payment methods, as noted in a company statement released on September 12.
USAT will utilize the Real World Assets Tokenization Platform, known as Hadron by Tether. The stablecoin will be issued by federally regulated crypto banks, with Anchorage Digital and Cantor Fitzgerald being designated as custodians and primary dealers, respectively, according to the announcement.
Tether’s CEO, Paolo Ardoino, remarked that USDT has been a trusted token for over a decade, widely used by millions in emerging markets. He emphasized that introducing USAT, along with Bo Hines as the future CEO, marks a logical step towards aligning with U.S. regulations.
Ardoino stated that USAT aims to bolster the dollar’s strength by offering products that are designed to be “more transparent, more resilient, more accessible and more unstoppable than ever.” Hines, an entrepreneur and a former executive director of the White House Crypto Council, brings a wealth of experience in law, governance, and financial innovation to the role. According to Hines, USAT is set to “strengthen America’s role in the global economy.”
He further noted that establishing USAT with a focus on compliance and innovation would ensure the dollar remains a cornerstone of trust in the digital asset realm. Tether appointed Hines as a strategic advisor in August, indicating he’ll assist in planning the company’s entry into the U.S. market. He left his role at the White House earlier this month.
Currently, Tether’s USDT is the most traded cryptocurrency worldwide. However, the company, based in El Salvador, has faced setbacks, including a ban from operating in New York and nearly $60 million in penalties related to alleged misleading claims made in 2021 under the Commodity Futures Trading Commission. Ardoino mentioned that while they focus on non-U.S. markets, compliance with U.S. regulations regarding stablecoins remains a priority.
