Why Tether is launching USAT, its U.S.-only stablecoin

Core Insights - Tether is launching a new stablecoin, USAT, to comply with U.S. regulations under the GENIUS Act, which is essential for maintaining its leading position in the crypto market [1][4] - Tether's market capitalization has reached $170 billion, making it a significant player in the financial landscape, comparable to the 18th largest holder of U.S. Treasury bonds [3] - The USAT will be fully backed by USD and other liquid assets, similar to Tether's existing USDT [5] Company Developments - Tether has partnered with Anchorage Digital Bank for the issuance of USAT and Cantor Fitzgerald for custody of the stablecoin's collateral, ensuring compliance with the GENIUS Act [6] - The headquarters for the USAT company will be located in Charlotte, North Carolina [6] - Tether has appointed Bo Hines, a former White House crypto council executive director, to help navigate regulatory challenges and anticipates significant growth for USAT within 12 to 24 months post-launch [7] Industry Context - Tether's USDT was pivotal in providing dollar liquidity in the early days of Bitcoin, establishing itself as a benchmark for cryptocurrency trading pairs [2] - The introduction of the GENIUS Act reflects the growing importance and regulation of the stablecoin industry in the U.S. [3][4]