Tether, the issuer of the top stablecoin USDT, is making inroads into the US market.
On Friday, the stablecoin firm unveiled its plans for USAT, a dollar-pegged asset the company says will be regulated in the US and backed by transparent reserves.
Tether notes the new stablecoin will comply with the GENIUS Act, which was signed into law in July by President Donald Trump.
The new legislation establishes a regulatory framework for stablecoins, requiring each token to be fully backed by liquid assets such as cash or short-term US Treasuries.
Tether also notes that Bo Hines, a former Republican Congressional candidate, will serve as chief executive of the new US-focused venture. Hines served as executive director of Trump’s “Crypto Council” from January to August.
Tether CEO Paolo Ardoino says the new development will help fortify the US dollar.
“Tether is already one of the largest holders of U.S. Treasuries because we believe deeply in the enduring power of the dollar. USAT is our commitment to ensuring that the dollar not only remains dominant in the digital age, but thrives – through products that are more transparent, more resilient, more accessible, and more unstoppable than ever before.”
The financial services giant Cantor Fitzgerald will serve as USA’s designated reserve custodian and preferred primary dealer.
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