Tether Shakes Up Stablecoin Market, Unveils New U.S.-Based Rival ‘USAT’

Core Insights - Tether is launching USA₮, a U.S.-regulated, dollar-backed stablecoin aimed at enhancing the U.S. dollar's role in digital markets [1] - Bo Hines, former Executive Director of the White House Crypto Council, has been appointed as the CEO of Tether USA₮, indicating a focus on compliance and American leadership [1][6] - The USA₮ will comply with the GENIUS Act, the new legislation governing stablecoin issuance in the U.S. [2] Company Strategy - The token will be backed by transparent reserves and issued through Anchorage Digital, the first federally regulated crypto bank, with Cantor Fitzgerald acting as custodian [3] - Tether's flagship token, USDT, has grown into a $169 billion asset, serving nearly 500 million users globally, especially in emerging markets [4] - Tether ranks 18th globally among the largest holders of U.S. Treasuries, with profits exceeding $13 billion in 2024 [5] Leadership and Compliance - Bo Hines' appointment as strategic adviser reflects Tether's commitment to U.S. leadership and compliance for the USA₮ launch [5][6] - CEO Paolo Ardoino emphasized that USA₮ will be "more transparent, more resilient, more accessible, and more unstoppable than ever before," aiming to solidify Tether's leadership in the stablecoin sector [6] - Tether is intensifying its U.S. strategy following the passage of significant stablecoin legislation, focusing on institutional markets [7]