Tether has launched a new stablecoin called USAT, which is backed by the U.S. dollar and designed to comply with the regulatory framework established by the GENIUS Act. Announced on January 27, 2024, USAT is issued by Anchorage Digital Bank, N.A., a federally regulated stablecoin issuer, with the designated reserve custodian and preferred primary dealer being Cantor Fitzgerald.
The new stablecoin is aimed at institutional users and platforms, allowing them to engage with a product that adheres to the applicable regulatory requirements. USDT, another stablecoin from Tether, continues to operate on a global scale and is progressing towards compliance with the GENIUS Act, according to the company’s press release.
Paolo Ardoino, Tether’s CEO, emphasized that USAT provides institutions with a secure option for digital transactions. “USAT offers institutions an additional option: a dollar-backed token made in America,” he stated. Ardoino noted that USDT has demonstrated its utility and trustworthiness over the past decade, and USAT aims to extend that mission by providing a federally regulated product tailored for the American market.
Launch and Availability
In the initial phase of its launch, USAT will be available on major platforms, including Bybit, Crypto.com, Kraken, OKX, and MoonPay. This availability allows institutions to utilize USAT for transactions that require rapid processing times. Anchorage Digital highlighted that USAT enables Americans to spend, send, and receive money with “near-instant speed,” facilitated by its issuance through a federally regulated bank.
Nathan McCauley, CEO and Co-founder of Anchorage Digital, remarked on the significance of issuing a stablecoin within the U.S. banking system. “For five years, we’ve operated as a federally regulated bank, purpose-built for digital assets,” McCauley said. “USAT reflects what’s possible when stablecoin issuance is done inside the U.S. banking system, under real supervision, with real accountability, at real scale.”
Following the announcement of USAT, Tether also revealed its plans in September to introduce this U.S.-regulated stablecoin, appointing former executive director of the White House Crypto Council, Bo Hines, to lead the initiative. Hines expressed that the primary focus of USAT is to ensure stability, transparency, and responsible governance in the evolving landscape of digital currencies.
As demand for stablecoins continues to rise globally, Tether’s USAT is positioned to cater to institutional clients seeking compliance with U.S. regulations while providing a reliable means of transaction in the digital economy.
