Tether unveiled USAT, a federally compliant dollar stablecoin issued by Anchorage Digital and custodied by Cantor Fitzgerald, with Bo Hines appointed as CEO.
Tether Launches USAT: A Federally Regulated US Stablecoin
Tether officially entered the US market on September 12th with the announcement of USA₮, a dollar-backed stablecoin built specifically for compliance with the GENIUS Act—the first major federal legislation governing stablecoin issuance. Unlike USDT, which operates offshore and serves 500 million users globally, USAT is designed exclusively for US businesses and institutions that require regulatory clarity.
The infrastructure behind USAT signals a serious commitment to legitimacy. Anchorage Digital, the only federally chartered crypto bank in the country, will issue the token. Cantor Fitzgerald, a Wall Street institution with deep ties to US Treasury markets, will custody the reserves and act as the preferred primary dealer. Tether's proprietary tokenization platform, Hadron, will power the technical layer.
Leadership is equally deliberate. Bo Hines, who served as Executive Director of the White House Crypto Council under President Trump, was appointed CEO of Tether's US division. Hines has a law degree from Wake Forest, two congressional campaigns, and direct experience shaping national digital asset policy. His transition from public service to Tether represents a calculated bet that regulatory engagement, not offshore ambiguity, is the path forward.
The timing matters. The GENIUS Act mandates that US-regulated stablecoins hold reserves in Treasury bonds and conduct regular audits—requirements Tether has historically avoided for USDT. By creating a legally distinct subsidiary, Tether can isolate USAT's reserves and submit to limited audits without exposing the broader mechanics of its $170 billion USDT operation. The company already holds over $100 billion in US Treasuries, ranking 18th globally ahead of Germany and South Korea, so reserve requirements aren't a constraint.
This setup puts USAT in direct competition with Circle's USDC, which has long positioned itself as the "compliant" alternative to Tether. USDC currently holds $72 billion in circulation and is favored by US institutions due to its transparent audits and regulatory alignment. USDT dominates trading volume and payments globally, particularly in emerging markets, but has faced years of scrutiny over reserve transparency and potential sanctions violations. The Wall Street Journal reported in October 2024 that Tether was under federal investigation for possible anti-money-laundering violations.
Early reactions are mixed. Analysts praised the move as a way to cement the dollar's digital dominance, while skeptics questioned whether USAT is a genuine regulatory pivot or a rebranding effort to avoid the "comply or die" ultimatum some warned was coming. Treasury Secretary Scott Bessent predicted the US stablecoin market could grow nearly eightfold to over $2 trillion in the next few years, suggesting significant institutional demand.
Whether USAT succeeds depends on trust. Tether's first-mover advantage with USDT gave it unmatched liquidity and adoption, but institutional players have historically been wary of its opacity. If Hines can navigate federal scrutiny and USAT demonstrates real compliance, it could reshape the US stablecoin landscape. If not, it risks becoming a footnote in Circle's ongoing dominance.