Tether debuts federally regulated USAT stablecoin via Anchorage Digital

Tether, the issuer of the world’s largest stablecoin USDT, is making its move into the U.S. domestic market with the launch of USAT, a dollar-backed token issued by Anchorage Digital Bank.

The launch, announced Tuesday, represents Tether’s first product specifically designed to operate within the U.S. federal stablecoin framework established under the GENIUS Act.

Unlike the globally oriented USDT, USAT is issued directly through Anchorage, a federally chartered, crypto-native bank, bringing its governance under the purview of the Office of the Comptroller of the Currency (OCC).

Stablecoins are cryptocurrencies pegged to assets like fiat currencies or gold. They underpin much of the crypto economy, serving as payment rails and a tool for moving money across borders. Tether's USDT is the largest stablecoin, followed by Circle's (CRCL) USDC.

For years, Circle’s USDC has been the preferred stablecoin for U.S. institutions due to its transparency and domestic alignment. By launching USAT, Tether is taking the fight to Circle’s home turf. Tether aims to leverage its massive financial firepower (reporting billions in quarterly profits) to scale USAT rapidly, aiming for a $1 trillion market cap within five years

The project is led by Bo Hines, former Executive Director of the White House Crypto Council, who serves as CEO of Tether USAT. To bolster institutional appeal, the firms have tapped Cantor Fitzgerald as the designated reserve custodian and primary dealer, aiming to provide bank-grade transparency and asset management from day one.

While Tether’s primary product, USDT, remains the dominant liquidity source in global crypto markets, the firm has faced years of scrutiny regarding its offshore status and reserve transparency. By partnering with Anchorage, Tether is attempting to bridge the gap with U.S. regulators and institutions that require a domestic, made in America alternative.

"USAT offers institutions an additional option: a dollar-backed token made in America,” said Paolo Ardoino, CEO of Tether, in the release. “USDT has proven for more than a decade that digital dollars can deliver trust, transparency, and utility at a global scale. USAT extends that mission by providing a federally regulated product designed for the American market."

At launch, the token will be available on several major trading platforms and payment gateways, including Kraken, OKX, Bybit, Crypto.com, and MoonPay.

By Hannah Lang

(Reuters) - Crypto company Tether, the creator of the world's largest stablecoin, plans to launch a U.S.-based stablecoin designed for U.S. residents called USAT, the company's CEO Paolo Ardoino said on Friday.

Former White House official Bo Hines will be the CEO of the new venture, which aims to launch by the end of the year, Ardoino said at a press conference in New York.

The move is the latest sign of Tether, which is based in El Salvador, looking to bolster its presence in the U.S., where crypto companies have benefited from U.S. President Donald Trump's pro-crypto stance.

“I think it’s a very exciting moment because we were under severe pressure from competitors that want to create a monopolistic environment in the United States,” Ardoino said. “We believe that Tether is the best product in the market."

Tether's dollar-pegged cryptocurrency, known as USDT, has a market capitalization of more than $169 billion, according to crypto data provider CoinGecko.

Trump in July signed a law dubbed the GENIUS Act to create a regulatory regime for stablecoins, a huge win for crypto supporters who had long lobbied for such a regulatory framework in a bid to gain greater legitimacy.

The new law requires stablecoins to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves monthly.

USDT still plans to comply with the GENIUS Act and remain a foreign stablecoin issuer, Ardoino said, adding that the law provides a way for foreign stablecoins to receive reciprocity.

"We want people to know that Tether is here to participate in the U.S. economy in a huge way," said Hines, who was appointed as a strategic advisor to Tether in August after he departed his position as executive director of the President's Council of Advisers on Digital Assets.

"I think our expansion will be exorbitant over the course of the next 12 to 24 months," Hines said.