Tether Rolls Out USAT Stablecoin Targeted at the US Market

Tether has launched its USAT stablecoin designed for the US markets. The launch comes months after the firm first disclosed plans for a US-specific stablecoin on September 12, 2025.

The firm worked with the financial services firm Cantor Fitzgerald and the crypto bank Anchorage Digital on the new product.

According to its announcement, Anchorage will issue USAT, with Cantor Fitzgerald as custodian and primary dealer. Cantor is already a custodian for USDT.

USAT is Tether’s Answer to Regulatory Compliance Concerns

With the launch of USAT,Tether finally has an answer to concerns about the regulatory standard of its USDT stablecoin. USDT is widely used globally and is regulated in several countries. However, it has faced criticisms and legal hurdles in the US.

Concerns about USDT regulatory compliance have increased since the enactment of the GENIUS Act. This established a US stablecoin framework.

The Act requires stablecoin reserves to be fully backed by US Treasuries and cash. USDT fails to comply with this requirement. It holds part of its reserves in Bitcoin and Gold.

However, USAT is designed to be fully compliant with the GENIUS Act so as to boost its adoption in the US.

The announcement reads:

The new stablecoin is available to US residents. US-based exchanges like Kraken and Crypto.com have already listed it. This makes it accessible for trading in the US market.

It is also available on Bybit, OKX, and Moonpay. This will likely be available as a trading pair on more exchanges in the coming months.

USAT to Compete with USDC, RLUSD, and Others

Meanwhile, the launch of USAT enables Tether to better compete with other stablecoin issuers, such as Circle and Ripple. These firms have positioned their stablecoins, USDC and RLUSD, as regulatory-compliant, something that Tether now offers.

This allows Tether to hedge its bets by keeping its offshore dominant stablecoin USDT while gaining entry into the US markets. The company’s CEO, Paolo Ardoino, acknowledged this in his statement. He noted that USAT offers institutions a dollar-backed token issued in America.

It is unlikely that the new product will affect USDT, the largest stablecoin with a market capitalization of over $186 billion. However, Tether also noted that its launch of USAT highlights its commitment to ensuring that the US remains the crypto capital of the world. It said:

Interestingly, Tether USAT has some White House connections. The CEO is Bo Hines, the former executive director of White House Crypto Council. US Commerce Secretary Howard Lutnick was also the former CEO of Cantor.