Tether has launched its first federally regulated stablecoin for the American market. USAT is now available on crypto exchanges including Kraken, OKX, Bybit, and Crypto.com. Anchorage Digital Bank serves as the issuer, while Cantor Fitzgerald manages the reserves.
Bo Hines leads the new unit. The 30-year-old headed the White House Crypto Council under President Trump until August 2025. There he worked closely with David Sacks, the administration's AI & Crypto Czar, on drafting the GENIUS Act.
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GENIUS Act creates federal framework for stablecoins
The launch takes place under the GENIUS Act, passed in July 2025 as the first federal US law on digital assets. President Trump signed the legislation after clear majorities in Congress: 68 to 30 in the Senate, 308 to 122 in the House of Representatives.
The law requires full backing by liquid assets. USAT is backed 1:1 by US dollars or short-term Treasury bills. Monthly audited reports on reserve composition are mandatory. In case of insolvency, stablecoin holders have priority over all other creditors.
The Office of the Comptroller of the Currency (OCC) assumes primary oversight. Stablecoins explicitly fall outside the jurisdiction of the SEC as securities or the CFTC as commodities. SEC Chair Paul Atkins called the signing a monumental step for crypto assets and financial markets.
Two-product strategy against Circle
Tether responds to changing market conditions with USAT. USDT's market share has fallen to about 60 percent at 186 billion USD. Circle's USDC now manages around 75 billion USD and dominates the US market for institutional clients.
USAT and USDT will coexist. Tether CEO Paolo Ardoino promises full interoperability: users can exchange both stablecoins one-to-one. USDT remains the international standard with approximately 186 billion USD market capitalization. USAT targets US institutions and American retail investors. Tether pursues aggressive goals. Ardoino aims for USAT to reach a market capitalization of one trillion dollars within three to five years.
From politics to stablecoin leadership
Bo Hines brings an unusual resume. The Yale graduate and lawyer ran unsuccessfully for US Congress in North Carolina in 2022. In January 2025, he took over leadership of the White House Crypto Council. After seven months, he moved to Tether, first as Strategic Advisor, then as CEO-designate.
The appointment came in September 2025, just one month after his departure from the White House. The North Carolina native now leads US expansion from Charlotte. Tether positions itself as a pillar of American financial interests. The company is the 17th largest holder of US Treasuries worldwide. Around 78 percent of reserves, approximately 135 billion USD, are invested in American government bonds.
Distribution through Rumble and crypto exchanges
For distribution, Tether relies on an unconventional partnership. The company invested 775 million USD in the video streaming platform Rumble. Rumble is currently developing its own crypto wallet for USAT. The platform reached about 51 million monthly active users in the US in Q2 2025.
Tether's stated goal: 100 million American users. At launch, crypto exchanges Bybit, Crypto.com, Kraken, OKX, and payment provider Moonpay also support the new stablecoin. The launch was delayed by about one month. Originally, the start was planned for December 2025. The exact reasons for the delay are not known but likely relate to regulatory approval processes.
Institutional ambition under federal oversight
With USAT, Tether enters regulatory new territory. The company has historically faced criticism for lack of transparency regarding USDT reserves. Under the GENIUS Act, strict disclosure requirements and audit standards apply.
Anchorage Digital Bank as issuer marks a first: it is the first federally regulated bank to issue a stablecoin. Cantor Fitzgerald, as a preferred primary dealer of the US government, manages the Treasury reserves.
The stablecoin market faces consolidation. Tether expects group profit of 15 billion USD for 2025. With these resources and political connections, the company positions itself for competition over institutional clients that Circle has dominated until now.
