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 designed specifically 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 bank, placing its governance under the purview of the Office of the Comptroller of the Currency (OCC).
Stablecoins are cryptocurrencies pegged to assets like fiat currencies or gold. They underpin much of the cryptoeconomy, serving as payment gateways and a tool for moving money across borders. Tether’s USDT is the largest stablecoin, followed by Circle’s USDC (CRCL).
For years, Circle’s USDC has been the stablecoin of choice for US institutions due to its transparency and national alignment. By launching USAT, Tether is taking the fight to Circle’s turf. Tether aims to leverage its massive financial firepower (reporting billions in quarterly profits) to scale USAT rapidly, with the goal of reaching 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 reinforce institutional appeal, the companies have selected Cantor Fitzgerald as designated reserves custodian and lead trader, with the goal of providing bank-grade transparency and asset management from day one.
While Tether’s flagship product, USDT, remains the dominant source of liquidity in global crypto markets, the company has faced years of scrutiny regarding its offshore status and the transparency of its reserves. By partnering with Anchorage, Tether attempts to close the gap with US regulators and institutions that require a domestic, American-made alternative.
“USAT offers institutions an additional option: a US-made dollar-backed token,” Paolo Ardoino, CEO of Tether, said in the statement. “USDT has proven for more than a decade that digital dollars can provide trust, transparency and utility on a global scale. USAT expands 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 Seeks New Investments to Power USAT Stablecoin to 100 Million Americans in December Launch
