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 work as part of the U.S. federal stablecoin established under the GENIUS Act.
Unlike the globally focused USDT, USAT is issued directly through Anchorage, a federally chartered crypto-native bank, placing 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 support much of the crypto economy, serving as payment channels 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 preferred stablecoin of US institutions due to its transparency and national alignment. By launching USAT, Tether takes the fight to Circle’s turf. Tether aims to leverage its massive financial firepower (recording billions in quarterly profits) to rapidly scale USAT, aiming for a market cap of $1 trillion within five years.
The project is led by Bo Hines, former executive director of the White House Crypto Council, who is CEO of Tether USAT. To enhance institutional appeal, the companies engaged Cantor Fitzgerald as their designated reserves custodian and primary dealer, with the aim of providing bank-grade transparency and asset management from day one.
Although Tether’s main product, USDT, remains the primary source of liquidity in global crypto markets, the company has faced years of scrutiny over its offshore status and the transparency of its reserves. By partnering with Anchorage, Tether is attempting to bridge the gap with American regulators and institutions who are demanding a domestic, made-in-America alternative.
“USAT offers institutions an additional option: a dollar-backed token made in America,” Tether CEO Paolo Ardoino said in the release. “USDT has proven for over a decade that digital dollars can provide trust, transparency, and utility on a global scale. USAT extends this mission by providing a federally regulated product designed for the U.S. market.”
At launch, the token will be available on several major trading platforms and payment gateways, including Kraken, OKX, Bybit, Crypto.com and MoonPay.
Learn more: Tether Considers New Investments to Push USAT Stablecoin to 100 Million Americans When It Launches in December
