Tether, the leading stablecoin issuer, has officially launched USAT, a new dollar-backed stablecoin designed to comply with the U.S. federal regulatory framework. This move signifies Tether's strategic entry into the U.S. market under the guidelines of the GENIUS Act, landmark legislation that establishes a comprehensive regulatory framework for payment stablecoins.
USAT is issued by Anchorage Digital Bank, the first federally regulated stablecoin-issuing bank in the United States. This partnership underscores Tether's commitment to operating within the bounds of U.S. law and provides a secure and compliant foundation for the new stablecoin. Former White House crypto official Bo Hines is expected to be CEO of the new venture.
The GENIUS Act, enacted the previous summer, clarifies that permitted payment stablecoins are not securities, commodities, or deposits. Instead, they fall under a separate regulatory regime primarily administered by the OCC (Office of the Comptroller of the Currency), along with the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Secretary of the Treasury, and state banking regulators. This framework aims to legitimize stablecoins and foster confidence in their use within the U.S. financial system.
Tether's decision to introduce USAT reflects the growing acceptance of digital assets by banks and the increasing clarity in U.S. regulations. Banks are increasingly integrating into the digital asset ecosystem following the enactment of stablecoin and market structure legislation. This trend is driven by factors such as maturing regulatory frameworks, the removal of barriers to banks offering cryptoasset custody, and growing customer demand for digital asset services.
USAT is designed as a digital dollar tailored for the U.S. regulatory environment and will be primarily supplied to institutions and platform users. Tether intends to keep its existing global stablecoin, USDT, separate from USAT, with USDT continuing to serve global markets while gradually aligning with GENIUS Act standards. Cantor Fitzgerald will manage USAT's reserve assets as the designated reserve custodian and preferred primary dealer, providing reserve management and transparency. Tether is currently the 17th-largest holder of U.S. Treasuries worldwide.
The launch of USAT comes at a time when stablecoins have moved from the periphery to the center of policy and banking discussions. Following the GENIUS Act, financial institutions have begun exploring stablecoins for various applications, including cross-border payments, liquidity management, and digital wallets. The introduction of USAT marks a significant step toward integrating stablecoins into the traditional financial system and expanding the use of digital currencies in the U.S.
