Tether launches USAT to operate within US markets under GENIUS Act framework
|- Tether announced on Tuesday the launch of new stablecoin USAT under GENIUS Act framework to capture the US markets.
- USAT is issued by Anchorage Digital Bank, with Cantor Fitzgerald serving as the reserve custodian and primary dealer.
- USAT will be available to investors on crypto platforms Bybit, Crypto.com, Kraken, OKX and Moonpay.
Tether announced on Tuesday the launch of USAT, a new federally regulated stablecoin designed specifically for the United States market under the recently enacted GENIUS Act framework. The move positions the world's largest stablecoin issuer to compete directly in the domestic market alongside Circle's USDC.
USAT to focus on US customers leveraging GENIUS Act framework
Unlike Tether's flagship token USDT, which operates globally, USAT is issued by Anchorage Digital Bank, America's first federally chartered stablecoin issuer. The token is structured to meet the GENIUS Act's strict requirements, including bank issuance, full reserve backing, and continuous regulatory oversight.
Paolo Ardoino, CEO of Tether, framed the launch as an extension of the company's proven track record. "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," Ardoino said in a Tuesday statement.
The new framework under the GENIUS Act created regulatory pressure that limited USDT's use on US-regulated platforms. Only stablecoins issued by federally or state-qualified entities can be marketed to US users, effectively forcing Tether to develop a compliant alternative or risk losing access to American institutions.
Bo Hines, who was named CEO of Tether USAT and previously served as Executive Director of the White House Crypto Council, emphasized the regulatory alignment. "With the launch of USAT, we see a digital dollar that is designed to meet federal regulatory expectations. Our focus is stability, transparency, and responsible governance, ensuring that the United States continues to lead in dollar innovation," Hines stated.
Cantor Fitzgerald has been appointed as reserve custodian and primary dealer. During its initial phase, USAT will be accessible through major crypto platforms including Bybit, Crypto.com, Kraken, OKX and Moonpay.
Beyond stablecoins, Tether continues expanding its presence in tokenized assets. The company's Gold-backed token XAUT recently surpassed $2.6 billion in market capitalization, accounting for over 50% of the entire Gold-backed stablecoin market.
According to Bloomberg, Tether holds the largest Gold reserve globally, aside from those held by central banks, exchange-traded funds (ETFs) and commercial banks.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.