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

Tether, the company behind the world’s most widely used stablecoin, has announced plans to launch USA₮, a U.S.-regulated, dollar-backed token to strengthen the role of the U.S. dollar in digital markets.

Alongside the unveiling, Tether named Bo Hines, the former Executive Director of the White House Crypto Council, as the incoming CEO of Tether USA₮.

The move shows what Tether calls the “next chapter” in its strategy, combining compliance, transparency, and American leadership.

USA₮ will be designed to comply with the recently enacted GENIUS Act, the landmark legislation governing stablecoin issuance in the United States.

Anchorage Digital and Cantor Fitzgerald to Back Tether’s New USA₮ Stablecoin

According to the company, the token will be backed by transparent reserves, issued through Anchorage Digital, the first and only federally regulated crypto bank, and supported by Cantor Fitzgerald, which will act as custodian and a preferred primary dealer.

Tether said the token will run on its Hadron platform, a real-world asset tokenization technology.

Tether has long dominated the stablecoin market with its flagship token, USDT. This token has grown into a $169 billion asset powering much of the global crypto economy.

USDT is used daily by nearly 500 million people worldwide, particularly in emerging markets where it serves as a digital alternative to cash for the underbanked and unbanked.

The company’s scale has placed it among the largest holders of U.S. Treasuries, ranking 18th globally, above Germany, South Korea, and Australia, with profits surpassing $13 billion in 2024.

On August 19, Tether appointed Bo Hines as strategic adviser for Digital Assets and U.S. Strategy. Bo Hines, who previously served as executive director of the White House Crypto Council, brings legal, policy, and business expertise to the role.

His appointment indicates Tether’s commitment to ensuring USA₮ launches with American leadership and compliance at its core.

Tether CEO Paolo Ardoino said the move reflects the company’s dedication to preserving U.S. dollar dominance in the digital age, describing USA₮ as “more transparent, more resilient, more accessible, and more unstoppable than ever before.”

With USA₮, Tether is betting on regulation and transparency to cement its role as the leader of a rapidly maturing stablecoin sector.

Tether Accelerates U.S. Strategy Amid Regulatory Shift

Tether is ramping up efforts to expand in the United States following the passage of landmark stablecoin legislation.

In July, CEO Paolo Ardoino said that the company is “well in progress” with a domestic strategy focused on institutional markets, including payments, interbank settlements, and trading.

The push comes as Tether broadens its technical footprint. On August 28, the firm announced plans to bring USDT to RGB, a protocol allowing private, scalable asset issuance on Bitcoin.

The launch will allow users to hold and transfer USDT alongside Bitcoin, with features such as offline transactions promising greater flexibility in payments.

Meanwhile, Tether is exploring direct investments in the gold sector. The company already holds $8.7 billion in gold reserves in Zurich, but is now in talks with mining and trading groups to expand exposure. Ripple CEO Brad Garlinghouse recently forecast that the stablecoin market could surge from $250 billion to $2 trillion, showing the sector’s rapid growth.

The broader stablecoin sector has also reached new highs. Data from payment platform Bridge shows that stablecoin transactions recently exceeded $2.5 trillion.

Additionally, the total stablecoin supply has reached an all-time high in the past few months, driven primarily by the growth of Tether’s USDT. Between June 2024 and June 2025, Chainalysis reported that USDT alone processed more than $1 trillion in monthly transactions, peaking at $1.14 trillion in January 2025.

Over the same period, rival token USDC ranged between $1.24 trillion and $3.29 trillion monthly, while smaller tokens like EURC and PayPal’s PYUSD recorded rapid growth.

Ethereum hosts the majority of this activity, with its stablecoin supply climbing to $165 billion in September, according to Token Terminal.

CryptoQuant data shows that centralized exchange reserves of stablecoins have reached a record $68 billion, with Binance accounting for $44.2 billion. Of this, $37.1 billion is held in USDT and $7.1 billion in USDC, cementing Binance’s role as the hub of global stablecoin liquidity.

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