Tether, the crypto company behind the world’s largest stablecoin, is preparing to deepen its push into the U.S. market with a new digital token tailored for American users. Chief Executive Paolo Ardoino said Friday the firm will roll out a U.S.-based stablecoin called USAT by year-end, describing the launch as a pivotal step for Tether’s growth strategy.
At a press conference in New York, Ardoino confirmed that Bo Hines, a former White House official who recently served as executive director of the President’s Council of Advisers on Digital Assets, will lead the new venture as CEO. Hines joined Tether in August as a strategic adviser and now becomes the public face of the project. “We want people to know that Tether is here to participate in the U.S. economy in a huge way,” Hines said, predicting “exorbitant” expansion over the next 12 to 24 months.
For Tether—headquartered in El Salvador—the launch marks its most direct effort yet to compete on U.S. soil, where crypto companies have been buoyed by President Donald Trump’s pro-digital asset stance. Ardoino cast the move as a response to competitive pressures at home and abroad. “We were under severe pressure from competitors that want to create a monopolistic environment in the United States,” he said. “We believe that Tether is the best product in the market.”
The company’s flagship token, USDT, is pegged to the dollar and boasts a market capitalization exceeding $169 billion, according to data provider CoinGecko. Tether has also become a major buyer of U.S. Treasuries, purchasing more than $33.1 billion worth of bills in 2024, which made it the seventh-largest holder of U.S. government debt. JPMorgan analysts estimated earlier this year that stablecoin issuers could collectively rank as the third-largest Treasury-bill buyers within a few years—a dynamic some officials see as potentially supportive for U.S. borrowing needs.
Tether’s expansion comes in the wake of significant regulatory change. In July, President Trump signed the GENIUS Act, creating the first comprehensive federal regime for stablecoins. The law requires issuers to fully back their tokens with liquid assets such as dollars and short-term Treasuries and to disclose their reserve composition monthly. Ardoino said Tether will continue to comply with the law as a foreign stablecoin issuer while using the reciprocity provisions to ensure USDT’s ongoing access to the U.S. market.
USAT itself will be issued by Anchorage Digital Bank, which holds a national trust bank charter from the U.S. Office of the Comptroller of the Currency. Anchorage will also be a shareholder in the venture, though Ardoino declined to name other investors. Cantor Fitzgerald will act as USAT’s custodian and preferred primary dealer, and the new operation will be headquartered in Charlotte, North Carolina, according to Hines.
The timing also positions Tether directly against its closest rival. Just three months ago, Circle—the issuer of USDC—went public in a blockbuster U.S. IPO that raised more than $1 billion. Circle shares have since slipped 5.8%, but the listing underscored the increasing mainstream appeal of stablecoins and their growing role in U.S. capital markets. U.S. Treasury Secretary Scott Bessent has been among the officials encouraging federal legislation, arguing that clear rules could spur additional demand for Treasury securities.
Tether, however, is no stranger to scrutiny. The company agreed in 2021 to publish quarterly reserve reports under a settlement with the New York Attorney General’s office, which had accused Tether and its sister company Bitfinex of commingling client and corporate funds to conceal an $850 million shortfall. Last year, The Wall Street Journal reported that U.S. authorities were examining possible sanctions or anti-money-laundering violations at Tether. Ardoino on Friday said he has seen no indication the company is under investigation.
By introducing a domestically focused stablecoin while keeping its flagship USDT abroad, Tether is betting that a two-pronged strategy will help it stay ahead of regulatory shifts and competitors alike. “This is a very exciting moment,” Ardoino said. “We believe the U.S. market offers enormous potential for growth, and Tether is ready to seize it.”
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