Lugano, Switzerland — Tether’s Expansion Plans
Tether, the firm behind the leading stablecoin USDT, is gearing up for new investments to target its US audience, aiming for a user base of 100 million, according to CEO Paolo Ardoino in a recent interview.
The upcoming USAT token is being crafted specifically for the American market, designed to meet federal regulations outlined by the GENIUS Act, and is set to launch this December. Tether America, the entity responsible for this, is a partnership between Tether and the regulated US crypto bank, Anchorage Digital.
A major aspect of the distribution plan for the new token will involve Rumble (RUM), a video-sharing platform in which Tether sunk $775 million last year. Rumble boasts about 51 million active users monthly in the U.S., who might be eligible to earn USAT tokens.
“We’re looking to invest in a couple of companies; the user base could fall between 51 million and 100 million,” Ardoino mentioned.
He didn’t specify any companies but hinted they might focus on social media or content platforms akin to Rumble, aligning with Tether’s vision of positioning USAT tokens in the creator economy.
“In the U.S., we need a more digital and professional approach to money that can stand up to PayPal,” he continued. “There are users out there eager to spend, so I think this product has incredible potential.”
“We’re determined to claim market share from competitors that initially tried to oust us,” Ardoino asserted.
Expansion in the Gold Market
Typically targeting emerging markets with limited dollar access, Tether is also experiencing a spike in stablecoin adoption. This growth has been partly fueled by regulatory progress, like the US GENIUS Act, which allows for more seamless integration of digital tokens into global transactions. The supply of USDT has surged to $182 billion, marking a one-third increase since the year’s start, dominating an asset class of roughly $300 billion. Circle (CRCL) Token is currently second with $72 billion, having grown about 70% this year.
In contrast, Tether’s gold-backed token, Zout, has skyrocketed in value, reaching record highs as gold prices surged. Zout’s market size has tripled to approximately $2.2 billion since January.
Ardoino noted that retail demand is a significant driver of this increase.
“We’re witnessing retail interest in tokenized gold, particularly in Latin America and Asia,” he observed. The rising retail interest has spurred market makers to tap into tokenized gold, offering it on secondary markets to widen spreads with their counterparties.
Recently, Prestige Wealth, a Nasdaq-listed firm, raised $150 million using Bitcoin as backing. Additionally, lender Antalfa has been accumulating Tether’s tokenized gold, further enhancing demand.
