Tether to launch USAT: Will this shake up the stablecoin market?

Deng Tong, Golden Finance

On September 12, 2025, stablecoin giant Tether announced its plan to launch USAT, a US-regulated, dollar-backed stablecoin, and announced the appointment of Bo Hines as the future CEO of Tether USAT. According to Tether's official introduction: USAT is purpose-built to serve the US market and support US regulatory standards, and will become a cornerstone of the next generation of American commerce, trade, and finance. As part of the Tether ecosystem, USAT will set a new benchmark for practical stablecoins in the United States, aiming to provide long-term value, strong governance, and real-world applications.

What are the new highlights of USAT? What is the significance of Tether's move?

1. New Highlights of USAT

The most significant feature of USAT is its compliance. While USAT is regulated by the US, it has also hired Bo Hines, former Executive Director of the White House Cryptocurrency Council, as its CEO.

1. Regulated by the United States

USAT is designed to be a stablecoin regulated by the United States and backed by the US dollar, complementing USDT, which has a circulation volume of approximately US$169 billion.

Tether CEO Paolo Ardoino stated that Tether aims to launch a US-native stablecoin called USAT by the end of this year. The stablecoin will be regulated in the United States under the US GENIUS Act, and the company is not seeking to go public.

Tether pointed out that the launch of USAT "reflects Tether's commitment to providing a US dollar stablecoin that is regulated by the United States and backed by transparent reserves, strong governance, and US leadership from day one."

As a stablecoin regulated by the United States, USAT aims to provide businesses and institutions with a digital alternative to cash and traditional payment methods. Anchorage Digital, the first and only federally regulated cryptocurrency bank, will serve as the issuer of USAT under the GENIUS Act. The bank holds a national trust bank charter from the Office of the Comptroller of the Currency. Cantor Fitzgerald will serve as the designated reserve custodian and preferred primary dealer for USAT. USAT will utilize Tether's Hadron technology platform to support the tokenization of physical assets. Tether plans to establish its US operations in Charlotte, North Carolina, with its international headquarters in El Salvador. 2. Beau Hines, former executive director of the White House Cryptocurrency Council, has been appointed CEO of Tether's newly established US subsidiary. Hines, who previously served as a "strategic advisor" to the largest stablecoin issuer, will oversee the launch of Tether's new stablecoin, USAT. Hines has been active at the intersection of governance, law, and financial innovation. He noted, "I am honored to lead the preparations for USAT, creating a U.S.-regulated, dollar-backed stablecoin to strengthen America's position in the global economy. By building USAT with compliance, transparency, and innovation at its core, we will ensure that the U.S. dollar remains the cornerstone of trust in the digital asset space." Hines' appointment is seen as a strategic move to bridge the gap between Tether and U.S. regulators, who have long scrutinized Tether for its opaque reserve management and links to illicit financial activities. The significance of Tether's launch of USAT: 1. Expanding the U.S. market. Hines stated that Tether's expansion in the U.S. market will be "very rapid" over the next two years. Paolo Ardoino stated, "USDT has become the dominant USD stablecoin in emerging markets, serving nearly 500 million people in Africa, Latin America, and Southeast Asia. It was built for the unbanked and underserved in developing regions. In contrast, USAT is a brand designed for the US market, compliant with domestic regulations, and aimed at expanding financial access to underserved communities within the US." Despite its dominant position in the global stablecoin market, USDT has historically been compliant with the US regulatory framework. Amidst increasingly stringent stablecoin regulations, Tether appears to be distancing itself from the US market. The launch of USAT is a significant step in Tether's compliance with US regulatory requirements. USAT will enable Tether to enter the US market smoothly, meeting the needs of US businesses and institutions for USD stablecoins. By leveraging the vast US financial system, Tether can expand its business scope and further increase its market share. 2. Competition with Competitors According to CryptoQuant, the market capitalization of stablecoins has increased by approximately 34% this year. As of September 11th, USDT ranked first in market capitalization with $169.4 million, accounting for 58% of the market share, while USDC remained firmly in second place with $72.4 million. The stablecoin market is expected to grow from its current $270 billion to $1 trillion in the next few years. Tether's new product, USAT, is positioned to compete directly with USDC and other US-regulated stablecoins, particularly as institutional demand for stablecoins for cross-border payments and remittances continues to grow. Paolo Ardoino stated, "I think this is a very exciting time because we are facing tremendous pressure from competitors who want to create a monopoly in the US, and we believe Tether is the best product on the market." USAT's competitors include US issuers such as Circle, Paxos, and Ripple. USDC already exists before USAT and holds a significant lead in the US. USAT's true success depends on whether it can defeat Circle while also facing increasing competition from companies like Stripe, Fireblocks, and Hyperliquid.

3. Strengthening the US Dollar’s ​​Position in Stablecoins

Tether CEO Paolo Ardoino said: “For more than a decade, as a founder of the stablecoin industry, Tether has issued USDT, a pillar of the digital economy. Now, it has issued a US dollar stablecoin for hundreds of millions of underserved people in emerging markets, proving that digital assets can bring trust, resilience and freedom on a global scale. Today, with the launch of USAT and the appointment of Bo Hines as the future CEO of Tether USAT, we are taking the next logical step to bring the same opportunity to the United States under the world-leading US regulatory framework. Tether is already one of the largest holders of US Treasuries because we believe deeply in the enduring power of the US dollar. USAT is our commitment to ensuring that the US dollar not only maintains its dominance in the digital age, but also thrives - through products that are more transparent, resilient, accessible and unstoppable than ever before.”

With USAT, the US dollar can penetrate deeper into emerging areas such as digital asset trading, cross-border payments, DeFi, and more, consolidating its dominant position in the global financial system. Although Tether previously had no operations in the United States, it has consistently maintained that USDT provides global investors with access to U.S. dollars, thereby enhancing the dollar's influence.

4. Setting a New Benchmark in the Stablecoin Industry

USAT, subject to strict regulatory standards and backed by transparent reserves, will set a new benchmark for compliance in the U.S. stablecoin industry.

Tether's launch of USAT sends a clear signal to the stablecoin sector: the future of stablecoins must be operated within a compliant framework. Other stablecoin issuers will also proactively pursue compliance, driving the entire stablecoin industry toward compliance and attracting more traditional financial institutions and retail investors.

III. Conclusion

USAT will be issued under the GENIUS Act, marking a major breakthrough for Tether's traditional offshore model and demonstrating its commitment to expanding its influence in the U.S. financial system. The appointment of Hines as CEO of USAT demonstrates Tether's commitment to providing a U.S.-regulated stablecoin. The birth of USAT is the product of the deep integration of traditional finance and emerging digital finance, and is also an important attempt to reshape the US stablecoin market landscape.