In a major strategic shift, Tether, the issuer of the world's largest stablecoin, USDT, has announced the creation of USA₮, a new dollar-pegged stablecoin specifically for the U.S. market. This move signals Tether's desire to embrace U.S. regulation and directly compete with U.S.-based rivals like USDC.
Leading this new initiative is Bo Hines, a 30-year-old former Trump-era policy advisor with a background in digital assets and government. His appointment as CEO of the new entity is seen as a strategic choice to help USA₮ navigate the complex U.S. regulatory landscape.
This expansion marks a significant change for Tether, which has historically maintained a distant relationship with U.S. authorities. The company has faced repeated criticism for its reserve transparency and has been investigated for potential market manipulation and money laundering. In 2021, Tether was fined by New York's attorney general for misleading claims about its reserves.
To address these concerns, USA₮ will be structured differently. It will be issued by Anchorage Digital, a federally chartered crypto bank, with its reserves held by Wall Street firm Cantor Fitzgerald. This setup is designed to align with new U.S. regulatory mandates, such as the GENIUS Act, which emphasizes transparent reserves and strict governance.
Tether's move comes at a crucial time. The company has been highly profitable, reporting over $13 billion in earnings in 2024, partly due to its massive holdings of U.S. Treasuries. However, the new GENIUS Act threatens to exclude offshore stablecoins like USDT from the U.S. market unless they comply with new rules. By launching USA₮, Tether is creating a compliant alternative to protect its market dominance.
This foray intensifies the competition in the $288 billion stablecoin market, where Tether's USDT holds a commanding 60-66% market share. Its main competitor, Circle's USDC, has long marketed itself as the more trustworthy, U.S.-regulated option. With USA₮, Tether is challenging this narrative head-on.
The success of USA₮ will depend on whether it can overcome past transparency concerns and convince U.S. institutions and regulators of its compliance. If it succeeds, it could cement Tether's role in the digital economy and further solidify the U.S. dollar's global digital dominance.
September 2025, Cryptoniteuae