Tether, the issuer of the world’s largest stablecoin USDT, is entering the US domestic market with the launch of USAT, a dollar-backed token issued by Anchorage Digital Bank.
The launch, announced Tuesday, represents Tether’s first product specifically designed to operate within the US federal stablecoin framework established under the GENIUS Act.
Unlike the globally oriented USDT, USAT is issued directly through Anchorage, a federally chartered, crypto-native bank that brings its governance under the Office of the Comptroller of the Currency (OCC).
Stablecoins are cryptocurrencies linked to assets such as fiat currencies or gold. They underpin much of the crypto-economy, acting as rails of payment and a tool for moving money across borders. Tethers USDT is the largest stablecoin followed by Circles (CRCL) USDC.
For years, Circle’s USDC has been the stablecoin of choice for US institutions due to its transparency and domestic customization. By launching USAT, Tether takes the battle to Circle’s home turf. Tether aims to leverage its massive financial firepower (reporting billions in quarterly profits) to rapidly scale USAT, aiming for a $1 trillion market cap within five years
The project is led by Bo Hines, former executive director of the White House Crypto Council, who serves as CEO of Tether USAT. To strengthen the institutional appeal, the firms have selected Cantor Fitzgerald as the designated reserve manager and primary dealer, with the aim of providing transparency and wealth management from day one.
While Tether’s primary product, USDT, remains the dominant source of liquidity in global crypto markets, the firm has faced years of scrutiny regarding its offshore status and reserve transparency. By partnering with Anchorage, Tether is trying to bridge the gap with US regulators and institutions demanding a domestic, made-in-America alternative.
“USAT offers institutions an additional option: a dollar-backed token made in America,” Paolo Ardoino, CEO of Tether, said in the release. “USDT has proven for more than a decade that digital dollars can deliver trust, transparency and utility on a global scale. USAT extends that mission by providing a federally regulated product designed for the US market.”
At launch, the token will be available on several major trading platforms and payment gateways, including Kraken, OKX, Bybit, Crypto.com and MoonPay.
Read more: Tether Eyes Fresh Investments to Push USAT Stablecoin to 100 Million Americans at December Launch
