Tether is a stablecoin pegged to the dollar
AFP

Tether, the company behind the world's largest stablecoin USDT, has announced plans to launch a new U.S.-domiciled stablecoin called USAT, designed specifically to comply with the United States' new federal stablecoin framework. The move marks Tether's first attempt to build a fully regulated digital dollar within the U.S. financial system and signals how quickly the market is adapting to Washington's evolving regulatory climate.

According to Reuters, Tether executives confirmed on September 12 that the new token will be issued by Anchorage Digital Bank, a federally chartered crypto-focused bank based in South Dakota. Anchorage will custody the reserves behind USAT and ensure they meet the strict backing and transparency requirements introduced under the GENIUS Act, a landmark stablecoin law signed by President Trump in July. That law mandates that any payment stablecoin issued in the U.S. must be fully backed by high-quality liquid U.S. dollar-denominated assets, subject to monthly disclosures and real-time attestations.

Reuters also reported that Tether has appointed Bo Hines, a 29-year-old former executive director of the White House's Advisory Committee on Digital Assets, to serve as chief executive of USAT. Hines will be responsible for overseeing regulatory compliance and coordinating with federal and state banking supervisors. "USAT will be fully anchored in the U.S. regulatory perimeter from day one," Hines said in a statement, adding that the goal is to "set a new standard for safety, transparency, and utility" in the stablecoin sector.

As noted by DL News, Tether faces an uphill climb breaking into the U.S. market, where Circle's USDC already dominates and enjoys strong relationships with banks and payment processors. Analysts at Bernstein told DL News that Tether will need to demonstrate airtight reserve management and build new U.S. distribution rails from scratch to win consumer trust. They also warned that "Tether's existing reputation for opaque disclosures may become a liability" as it seeks regulatory acceptance.

The GENIUS Act was the first federal legislation to provide a clear legal framework for stablecoins, after years of uncertainty. According to the International Consortium of Investigative Journalists (ICIJ), the law passed with bipartisan support after a series of bank-led pilot programs showed the potential of stablecoins to reduce payment costs. The Act assigns regulatory oversight to the Office of the Comptroller of the Currency (OCC) and requires issuers to undergo bank-style supervision.

If USAT succeeds, it could reshape the competitive landscape by showing that foreign-linked issuers can operate under full U.S. oversight and could accelerate the broader institutional adoption of regulated stablecoins in mainstream payments.