Key Takeaway: Company appoints former White House crypto adviser Bo Hines as CEO of the new division.
Tether unveiled USAT, its first U.S.-regulated stablecoin meticulously designed to meet federal compliance standards. The company also announced the appointment of former White House crypto adviser Bo Hines as CEO of the new American division.
Strategic Move Into Regulated Territory
Tether, the issuer behind the world’s largest stablecoin USDT with a market capitalization exceeding $169 billion, announced Friday the launch of USAT (USA₮), a dollar-backed digital token specifically designed for the U.S. market. The announcement marks Tether’s first attempt to create a stablecoin under direct U.S. regulatory oversight, positioning the company to compete with established American issuers including Circle, Paxos, and Ripple.
The new token will comply with the recently enacted GENIUS Act, a landmark federal legislation that established comprehensive rules for stablecoin issuers. Under this framework, stablecoins must maintain 1:1 backing with liquid assets such as U.S. dollars and short-term Treasury securities, while issuers must provide monthly public disclosures of their reserve composition.
USAT will utilize Tether’s proprietary Hadron platform for real-world asset tokenization. Anchorage Digital, a federally regulated crypto bank, will serve as the token’s issuer, while Cantor Fitzgerald will manage reserves and act as the preferred primary dealer.
Political Connections Drive Leadership Choice
Bo Hines, former Executive Director of the White House Crypto Council under President Donald Trump, has been appointed as CEO of Tether’s American division. Hines brings a wealth of expertise, having advised the President on crypto policies and led interagency working groups focused on responsible innovation and consumer protection.
Hines joined Tether as Strategic Advisor for Digital Assets and U.S. Strategy in August 2025, immediately before his promotion to lead the USAT initiative. “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.
The company plans to establish U.S. operations in Charlotte, North Carolina, while maintaining its international headquarters in El Salvador. This geographic strategy allows Tether to serve both domestic and global markets through separate operational frameworks.
Market Opportunity and Competition
The stablecoin market has experienced explosive growth, reaching approximately $270 billion in total capitalization, with projections suggesting potential expansion to over $1 trillion in the coming years. Tether’s USDT dominates this space with a 61.77% market share, processing daily trading volumes that frequently exceed those of Bitcoin and Ethereum combined.
USAT represents Tether’s strategic response to increasing competitive pressure from U.S.-regulated alternatives and evolving regulatory requirements. The token is designed explicitly for American businesses and institutions, backed by disclosed reserves and meeting U.S. compliance standards.
Circle’s USDC maintains the second-largest market position with over $65 billion in circulation, positioning itself as a more transparent alternative to Tether. Major stablecoin issuers are simultaneously pursuing federal banking licenses, with Circle, Paxos, and Ripple all applying for national trust charters.
Regulatory Background and Challenges
Tether’s journey to regulatory compliance has been marked by significant controversies. The company faced intense scrutiny regarding transparency and reserve backing practices, culminating in multiple settlements, including an $18.5 million agreement with the New York Attorney General in 2021.
The GENIUS Act represents a watershed moment for stablecoin regulation, passed by the Senate with a 68-30 bipartisan vote in June 2025. The legislation requires issuers with over $10 billion in circulation to operate under federal oversight and establishes strict reserve requirements.
Future Market Impact
Tether CEO Paolo Ardoino emphasized the company’s unwavering commitment to regulatory compliance and the enduring power of the dollar: “Tether is already one of the largest holders of U.S. Treasuries because we believe deeply in the enduring power of the dollar. USA₮ is our commitment to ensuring that the dollar not only remains dominant in the digital age, but thrives”.
Treasury Secretary Scott Bessent has indicated that the U.S. stablecoin market could expand nearly eightfold to exceed $2 trillion in the coming years, driven by federal regulatory clarity and institutional adoption.
What’s Next
The dual-token strategy allows Tether to maintain its dominant international position with USDT while establishing compliant operations for the U.S. market. However, significant challenges remain as the company must navigate complex compliance requirements while competing against established domestic issuers with existing regulatory relationships.
The success of USAT will largely depend on institutional adoption and Tether’s ability to demonstrate consistent regulatory compliance. With nearly 500 million USDT users globally and deep integration into crypto trading infrastructure, Tether possesses significant competitive advantages for its U.S. expansion.
Sources: Reuters, Tether, and CNBC covering the September 12, 2025 announcement.