TLDR:
- Market: Tether’s USDT enjoys a $169B market cap and the crown for stablecoins, and USAT targets U.S. institutional demand in a crowded space led by Circle’s Arc and even Tether’s own Plasma.
- Narrative: Tether launched USAT on September 12, 2025, a U.S.-regulated GENIUS Act-compliant stablecoin whose issuances and custodians are Anchorage Digital and Cantor Fitzgerald, respectively. Chaired by the former member of the White House Crypto Council, Bo Hines, it complements the USDT and signals the U.S. return of Tether but is subject to regulatory scrutiny and risk of competition.
Tether, the world’s largest stablecoin issuer, whose USDT possesses a $169B market cap, revealed the launch of USAT, a dollar-denominated stablecoin fully in compliance with U.S. regulations under the GENIUS Act, on September 12, 2025. Created for institutions and businesses, USAT shall be issued by Anchorage Digital and enjoy the services of Cantor Fitzgerald as reserve custodian and primary dealer—the same institution handling USDT’s Treasury reserves. Tether presents USAT as an accompaniment for USDT, solidifying the dollar’s dominance in the digital space while in compliance with U.S. legal statutes.
The tweet announcing $USAT The initiative is headed by Bo Hines, who recently stepped down as Executive Director of the White House Crypto Council and became an advisor for Tether prior to being named CEO of Tether USAT. Hines was a member of the Trump administration’s crypto advisory panel and will lead operations for the initiative based in Charlotte, N.C. with a planned launch by the end of 2025. Tether’s CEO, Paolo Ardoino, highlighted the initiative of USAT in bringing the global success of USDT to the U.S. and commented, “For over a decade, Tether has issued USDT, the backbone of the digital economy… Now, with USAT and Bo Hines as CEO, we’re taking the next step to replicate this in America under U.S.-led legal frameworks.”
This is Tether’s strongest U.S. foray since earlier regulatory scrutiny by using partners like Anchorage (a federally chartered cryptocurrency bank) in a push for transparency and governance. USAT will use the Tether Hadron tokenization system, and shareholders in reserve revenue will be Anchorage and Cantor. Against the backdrop of a stablecoin boom, including Circle’s Arc, Stripe/Paradigm’s Tempo, Tether’s Stable/Plasma, Ethena’s Converge, MetaMask’s mUSD, MegaETH’s USDm, and WLFI’s USD1, USAT targets institutional demand. Competition and GENIUS Act implementation risks can hold back adoption. Investors should pay heed to regulatory approval and the USAT launch for fear of U.S. compliance challenges in a $169B stablecoin market.
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