Tether makes a strong return to the U.S. market! Launching the compliant stablecoin USAT, aiming to become the dominant issuer.

Executives at Tether Holdings SA made it clear on Tuesday that the company is returning to the U.S. market and aims to become the dominant stablecoin issuer in the country. Tether's digital asset and U.S. strategic advisor Bo Hines stated that the goal of returning to the U.S. market is to replicate the success it has achieved overseas.

The core of this strategy is the launch of a new token, USAT, tailored specifically for the U.S. market, led by Hines and launched in collaboration with Cantor Fitzgerald LP, aimed at providing instant settlement and reducing costs.

01 Strategic Return: Re-entering the US Market

Although Tether has dominated the global stablecoin market in recent years, it has remained relatively low-key in the U.S. market. Now, the company is changing this strategy and announcing its active return to the U.S. market.

Tether CEO Paolo Ardoino stated that the company's advantage lies in the distribution network established over the past 11 years, while competitor Circle relies on revenue sharing with platforms like Coinbase to expand its business.

Ardoino emphasized: "We don't need to rent distribution channels like our competitors; we have our own channels."

Despite Circle's high-profile announcement of going public, Tether has no intention of following suit. Ardoino pointed out that the company made a profit of $13.7 billion last year and does not need to raise funds, but plans to invest in business development through building new distribution channels and other means.

02 USAT: A Stablecoin Born for Compliance

Last week, Tether announced the new token USAT plan, which is designed specifically for the American market and fully complies with the regulatory requirements of the GENIUS Act.

USAT will be issued by Anchorage Digital Bank, which holds a national trust bank license issued by the Office of the Comptroller of the Currency. Cantor Fitzgerald will serve as the custodian and primary dealer for the reserves of USAT.

Unlike USDT, USAT is designed as a fully autonomous "U.S. exclusive" stablecoin, aimed at meeting the stringent requirements of domestic institutional investors in the United States. Tether stated that USAT does not have a yield generation plan.

03 Political Wisdom: Key Personnel Appointments

Tether appoints Bo Hines as the CEO of Tether USA, a decision that showcases the company's political acumen.

Heinz is not only a former congressional candidate but also served as a cryptocurrency policy advisor on Donald Trump's team. He was the executive director of the Trump Presidential Digital Asset Advisory Council and played a key role in pushing the GENIUS Act through Congress.

Hiring Hines clearly indicates that Tether has recognized that in order to succeed in the United States, it must actively participate in the formulation of rules, transforming itself from a passive regulatory subject into an active industry participant with political influence.

04 Financial Strength and Investment Layout

Tether has strong financial strength to support its U.S. expansion plan. The company's unaudited profits for 2024 are as high as $13 billion, holding $94.5 billion in U.S. Treasury bonds and $7 billion in excess reserves.

Ardoino revealed that the company has invested $5 billion in the United States, including a $775 million investment in Rumble Inc.

The investment in Rumble is part of Tether's strategic layout. Rumble plans to integrate Bitcoin and USDT payments, launching the cryptocurrency wallet Rumble Wallet, which allows creators to receive tips through cryptocurrency. This helps Tether expand the application scenarios of USDT and consolidate its dominance in the stablecoin market.

05 Market Impact and Future Outlook

Tether's return to the US market could have a significant impact on the stablecoin competitive landscape. Currently, USDT is the largest stablecoin in the world, with a supply of $171 billion, primarily backed by US Treasury bonds.

Analysts believe that Tether's U.S. expansion may have regulatory implications, affecting other stablecoins, and possibly increasing the demand for regulatory clarity, which could promote further innovation in stablecoin technology.

In the future, Tether may form a "dual-coin" strategic pattern of "internal and external distinction": USDT will continue to serve the vast developing markets and crypto-native users globally; while USAT will act as its compliant "onshore dollar" for penetrating the establishment financial world in the United States.

Conclusion

Tether's strategy to return to the U.S. market is clear: through the USAT stablecoin, which is designed specifically for compliance, key political connections, and strong financial strength, the company is attempting to replicate its global success and conquer the United States, the most important financial market in the world.

With the GENIUS Act providing a regulatory framework for stablecoins, Tether's return may reshuffle the landscape of the U.S. stablecoin market and challenge the positions of existing players like Circle.