Tether, the leading stablecoin issuer, has announced USAT, a U.S.-based stablecoin.
The new product will be helmed by former White House crypto official Bo Hines, who was recently hired by Tether as the company’s U.S. advisor.
The announcement says that the stablecoin will adhere to "strict regulatory standards."
Federally chartered cryptocurrency bank Anchorage will be the issuer, and Cantor Fitzgerald, the financial services firm spearheaded by Commerce Secretary Howard Lutnick, will be responsible for handling the treasury reserves.
Tether CEO Paolo Ardoino has stated that the yet-to-be-launched product will help to ensure that the U.S. dollar remains dominant in the digital age and continues to thrive.
More competition for Ripple
The new announcement will certainly heat up the ongoing stablecoin race in the U.S., which has such notable new participants as Ripple’s highly regulated RLUSD stablecoin.
As reported by U.Today, Ripple’s Jack McDonald previously stated that the stablecoin would be able to quickly reach $10 billion in market cap.
Multiple banks are also planning stablecoin launches following the passage of the GENIUS Act in the US.
Tether's offshore-issued USDT stablecoin remains the current market leader with a total market cap of $169 billion. Ardoino has described the flagship stablecoin as "the backbone" of the digital economy.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team