jakiro
Author: Zhang Feng
According to media reports, on September 13, Tether, the issuer of the world’s largest stablecoin USDT, announced that it will issue a new stablecoin USAT in accordance with the US stablecoin bill, and appoint former White House adviser Bo Hines to lead Tether’s US business.
The news is surprising – as one of the world’s most profitable cryptocurrency companies, Tether made a profit of $13 billion last year, and is one of the largest holders of U.S. Treasury bonds, ranking 18th in the world, with higher holdings than sovereign countries like Germany, South Korea and Australia.In this case, Tether still announced its entry into the US market to launch the compliant stablecoin USAT.What strategic considerations are hidden behind this move?
1. Facing opportunities and challenges, Tether announces the launch of US compliance stablecoin
Tether announced the launch of the USAT stablecoin this time, which is a compliant product specially designed for the US market.Unlike the existing USDT, the USAT will fully comply with the recently passed GENIUS Act requirements of the United States.The new stablecoin will use Tether’s proprietary tokenization platform Hadron, with crypto bank Anchorage Digital as the issuer, while the well-known Cantor Fitzgerald will serve as the reserve custodian and preferred lead underwriter.
In terms of personnel arrangements, Tether hired former White House crypto committee executive director Bo Hines as CEO of Tether’s U.S. business.Hines was appointed executive director of the White House Crypto Commission by Trump earlier this year, and announced his resignation and joined Tether in August after pushing for the implementation of the stablecoin bill.
Tether’s entry into the US market this time is not accidental, but the result of facing dual factors of regulatory pressure and market demand.With the passage of the U.S. stablecoin bill, USDT faces threats to be expelled from the U.S. market for not meeting regulatory requirements.Under the U.S. bill, operators must provide 1-to-1 reserve support for stablecoins and highly rated assets such as U.S. Treasuries, provide monthly reserve reports and undergo annual audits.However, in USDT’s reserves, up to 20% of assets are composed of Bitcoin, gold, other investments and mortgages, which does not meet US regulatory requirements.
In terms of market, the United States is the world’s largest financial market. Although Tether has 500 million users worldwide, it has been suppressed by its competitor Circle in the US market.Although Circle’s USDC stablecoin is only US$72.8 billion, less than half of Tether’s, it has obtained a key New York State digital currency license early.
2. Dual track parallel, complementary to USDT
Tether adopts a “dual currency strategy” to balance the demands of the global market and the US market.Tether CEO Paul Aldoigno said it plans to launch USAT by the end of 2025, and will also work hard to keep USDT in circulation in the United States.He noted that the Stablecoin Act allows overseas issuers registered in certain jurisdictions with comparable rules to offer stablecoins in the United States.USDT will continue to serve global markets, especially emerging market users; while USAT is specifically aimed at the US market and meets strict regulatory requirements.
USAT’s business model focuses more on compliance and transparency.It will be fully backed by cash and U.S. Treasury bonds as reserves, follow a 1:1 reserve requirement and provide periodic audits and reports.This is in sharp contrast to the reserve composition of USDT.
USAT is not about replacing USDT, but is about forming a complementary relationship with USDT.Anton Golub, Freedx’s chief commercial officer, believes that Tether now runs two stable products USA₮ and USDT, which will lead to problems with fragmented liquidity pools.
However, Tether seems to take a different perspective, viewing USAT and USDT as products targeting different markets and user groups.
“For more than a decade, Tether – as the creator of the stablecoin industry – has issued USDT, a pillar of the digital economy, today providing USD stablecoins to hundreds of millions of underserved people in emerging markets, proving that digital assets can provide trust, resilience and freedom globally,” said Paolo Ardoino, CEO of Tether.USAT focuses on the US market and provides services to corporate and institutional users who need full compliance.This dual-track strategy allows Tether to meet the needs of different markets at the same time.
III. Impact on other stablecoins in the United States
Tether’s direct competitor to launching USAT is Circle’s USDC.Circle has long relied on compliance with U.S. regulations and its global regulatory licensing portfolio to maintain a competitive advantage among institutional-level crypto users.After the news was announced, Circle’s stock price fell by more than 5% during the session, indicating that the market believes that Tether’s compliant stablecoin will pose a serious threat to Circle.
The launch of USAT may change the competitive landscape of the US stablecoin market.With its huge scale benefits and brand influence, Tether has the potential to quickly capture USDC’s market share.At the same time, this will also pose a challenge to other traditional financial institutions trying to enter the stablecoin field, with traditional financial giants including Bank of America being tested for stablecoin strategies.
4. Inspiration on the application of Hong Kong stablecoins
Tether’s move to enter the US market also provides inspiration for stablecoin regulation in Hong Kong and other regions.On August 1, 2025, the Hong Kong “Stablecoin Ordinance” officially came into effect, establishing the world’s first regulatory framework specifically targeting fiat-anchored stablecoins.Hong Kong adopts a “prudent and gradual” regulatory style: high capital threshold, strict reserve requirements, KYC real-name system, and review of the sustainability of business models.
The GENIUS Act, the US “GENIUS Act”, adopts the idea of ”market first”, does not set rigid capital requirements, has diversified issuance paths, and relies more on market screening and user selection.The two regulatory models have their own advantages and disadvantages.The Hong Kong model pays more attention to investor protection and systematic stability, but may curb innovation; the US model is more flexible, but has higher risks.Therefore, some market analysts believe thatFor issuers, the Hong Kong model is suitable for compliant funds, financial institutions and large Internet companies; while the US model is more suitable for early-stage entrepreneurial teams and exploration of new mechanisms.
5. The future of stablecoins: refine scenarios and meet supervision
Stablecoins are gradually entering the role of mainstream financial and payment infrastructure from being regarded as a cryptocurrency tool that has been regarded as a marginal or experimental cryptocurrency tool in the past.In the next 6-12 months, we can expect the following development directions: further refinement of regulation, expansion of stablecoins in payments and cross-border transactions, competition between local currency stablecoins and sovereign currencies, and industry cooperation and infrastructure improvement.
For Tether, launching USAT is just the first step.How to balance the relationship between USDT and USAT, how to meet the regulatory requirements of different jurisdictions, and how to deal with competition from traditional financial institutions are all challenges that need to be faced in the future.
In the future, Tether may form a dual currency strategic pattern with “internal and external differences”: USDT will continue to serve the vast global developing market and encrypted native users; while USAT will serve the “onshore dollar” that invades the US establishment financial world.The launch of USAT means Tether is moving from the “king of offshore” to the “global hegemony”, from evading regulation to proactively embracing compliance.
