Tether launches US-compliant stablecoin USAT to compete with Circle?

Chainfeeds Guide:

USAT is expected to officially launch by the end of 2025, initially open to U.S. residents, businesses, and institutional users.

Source:

Author:

Foresight News

Opinion:

Foresight News: On September 12, Tether announced the launch of a new stablecoin, USAT, which is a fully compliant, dollar-backed stablecoin specifically designed for the U.S. market. At the same time, Tether announced the appointment of Bo Hines as the future CEO of Tether USAT in the United States. In the cryptocurrency sector, Tether's USDT has a market capitalization exceeding 170 billions USD, and is widely used for trading, cross-border payments, and DeFi applications. Tether's total profit for 2024 exceeded 13 billions USD, with total profit in the first half of 2025 reaching about 5.7 billions USD, including a record net profit of 4.9 billions USD in Q2, mainly from U.S. Treasury yields and reserve appreciation. According to data from defiLlama, as of September 14, the total market capitalization of stablecoins is about 289.234 billions USD, with USDT accounting for 58.96%, maintaining a dominant market position. However, as the U.S. regulatory environment becomes increasingly stringent, Tether faces compliance pressure. The launch of the new stablecoin USAT by Tether is seen as a strategic move to enter the U.S. domestic market. This decision by Tether is not a sudden idea, but a response to global regulatory trends. Since 2022, agencies such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have strengthened their regulation of stablecoins. As a non-U.S. issued product, USDT has been involved in controversies multiple times, including issues of reserve transparency and anti-money laundering compliance. Tether is headquartered in the British Virgin Islands, and although its stablecoins circulate globally, their use in the U.S. is restricted, with some exchanges and institutions reluctant to directly support non-compliant assets. The purpose of launching USAT is precisely to fill this gap and provide a stablecoin option that complies with the U.S. legal framework. USAT will be pegged to the U.S. dollar at a 1:1 ratio, backed by Tether's reserves, including cash, U.S. Treasuries, and other highly liquid assets. The core highlight of USAT is its "U.S. compliance" attribute. According to Tether's official statement, this stablecoin will be issued and managed by a newly established U.S. subsidiary, and is expected to officially launch by the end of 2025, initially targeting U.S. residents, businesses, and institutional users. Unlike USDT, USAT will strictly comply with the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations, and support KYC verification. In addition, the official USAT website has issued an important notice stating that USAT is not legal tender, nor will it be issued, supported, approved, or guaranteed by the U.S. government. USAT is not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any other government agency. It is worth noting that Tether has appointed Bo Hines as CEO of the new business. Bo Hines is a veteran in the political and business fields, having served as an advisor to former President Donald Trump and ran for a congressional seat in North Carolina in 2022. He is known for his conservative stance, especially his proactive attitude towards cryptocurrency regulation and innovation policy. Hines' appointment is seen as a signal that Tether is seeking to strengthen its influence in U.S. political circles. Hines revealed that the company's new U.S. headquarters will be located in Charlotte, North Carolina.