Tether launches USAT to operate within US markets under GENIUS Act framework

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.