Tether announced USAT today - a separate, US-regulated stablecoin designed to meet the requirements of the GENIUS Act. They're setting up shop in Charlotte, North Carolina with Bo Hines (former White House Crypto Council head) as CEO of the US division.
Here's what's actually interesting about this: Anchorage Digital will issue the tokens while Cantor Fitzgerald manages the reserves. Both firms are taking equity stakes in the new US entity and sharing revenue from reserve assets. This isn't just Tether slapping a "US Compliant" sticker on USDT - it's a completely separate business.
The timing makes perfect sense because USDT is radioactive in the US. Regular USDT is still under constant regulatory scrutiny, with the SEC breathing down their necks about whether they actually have the money they claim to have. Meanwhile, Circle's USDC has been eating market share among US institutions who won't touch USDT because their lawyers keep screaming "NO NO NO."
Tether's USDT market cap is $169 billion globally, but most of that volume comes from emerging markets where banking infrastructure sucks. In the US, businesses have been hesitant to adopt USDT because of regulatory uncertainty. USAT could finally let them tap that market legitimately.
The GENIUS Act passed this year setting federal standards for stablecoin issuers. Instead of fighting the regulations, Tether's embracing them with a clean-slate approach. Smart play, honestly.
What's questionable is whether US institutions will trust anything with "Tether" in the name. USDC already has the "US-regulated" brand locked down, plus partnerships with major traditional finance firms. Tether's advantage has always been that USDT works everywhere, even in sketchy jurisdictions where you can't ask too many questions about reserves. That's less relevant for US institutions who actually audit their shit.
Let's be honest - Tether has spent years dodging questions about whether they actually have the dollars backing USDT. The New York Attorney General fined them $18.5 million in 2021 for lying about reserves. Can they really expect US businesses to forget that?
The revenue sharing model with Anchorage and Cantor is clever though. Instead of trying to build compliance infrastructure from scratch, they're partnering with firms that already have the regulatory relationships. Anchorage is a federally regulated crypto bank, Cantor manages billions in traditional finance. Both know how to talk to regulators without sounding like they're running a money laundering operation.
Bo Hines appointment makes sense too. Guy was literally advising Trump on crypto policy. If anyone knows how to navigate the US regulatory maze, it's him. Plus he's got the political connections to smooth over any initial skepticism from Washington.
The real test will be adoption. US businesses have spent years being told "don't touch Tether" by their compliance departments. Convincing them that USAT is different will take time and a lot of educational marketing. But if they can pull it off, they're looking at a massive untapped market.