Tether, the leading issuer of the widely used stablecoin USDT, has announced the launch of a new token called USAT, which will be Dollar-backed and regulated in the U.S. This landmark initiative was revealed by Tether CEO Paolo Ardoino during an event in New York. The new token aims to align with the recently passed GENIUS Act, which establishes federal guidelines for stablecoin issuers.
To manage the issuance of USAT, Tether has partnered with Anchorage Digital, a federally regulated crypto bank. In addition, Cantor Fitzgerald will oversee the management of the reserves backing the token. The launch is scheduled for later this year, and it marks Tether’s first attempt to create a stablecoin under U.S. regulatory oversight.
At the helm of Tether’s American division is Bo Hines, a lawyer with experience in cryptocurrency policy. Hines previously served as a director of the White House Crypto Council under former President Donald Trump, where he advised on issues related to digital currency regulations. Under his leadership, Tether aims to address the challenges of oversight and transparency that have surrounded its existing USDT stablecoin, which currently boasts a valuation of approximately $169 billion and serves millions globally, particularly in emerging markets facing high banking fees and inflation.
The introduction of USAT signifies Tether’s commitment to developing products tailored for U.S. businesses and institutions. The company emphasizes that USAT will be governed by U.S. standards and will be backed by clearly disclosed reserves. “By building USAT with compliance, transparency, and innovation at its core, we are ensuring that the dollar remains the foundation of trust in the digital asset space,” Hines stated, highlighting the strategic direction of Tether’s new initiative.
