Key Insights:
- US stablecoin is launched with a $10M supply on Ethereum to the US market.
- Anchorage manages reserves by USAT and Cantor, in accordance with the rules of the GENIUS Act.
- USAT is aimed at regulated access among institutions and retail users in the US.
Tether has launched USAT, a federally regulated, dollar-backed stablecoin designed for the U.S. market under the GENIUS Act, the first token introduced to the country’s new federal regulatory regime for stablecoins.
USAT Stablecoin by Federally Regulated Bank.
The launch was announced on Tuesday and follows earlier disclosures about the project’s structure and leadership, including the appointment of Bo Hines as chief executive officer of Tether USAT.
The USAT stablecoin is positioned as a U.S.-focused digital dollar product intended to meet federal regulatory requirements while operating within the country’s evolving digital payments infrastructure.
The issuer of the token is Anchorage Digital Bank, which also offers a framework to facilitate on-chain visibility, embedded risk management, and compliance with U.S. banking standards.
Source: Tether
According to CoinMarketCap data, the token was launched with an initial supply of $10 million as an ERC-20 token on the Ethereum blockchain.
Tether presented the USAT stablecoin as a dollar-backed token that meets federal requirements for payment stablecoins.
According to the GENIUS Act, issuers are required to maintain a one-to-one backing of U.S. dollars and short-term U.S. Treasury bills and are subject to ongoing oversight. Moreover, the framework represents the first federal regulatory structure for stablecoins in the United States.
Leadership and Regulatory Positioning
Bo Hines, former executive director of the White House Crypto Council under President Donald Trump, was appointed CEO of Tether USAT in September. His appointment was disclosed during early announcements related to the token’s development.
Tether stated that USAT is intended to operate within the regulatory framework established by the GENIUS Act and to meet institutional requirements for a federally compliant stablecoin.
Tether noted that USDT, its flagship stablecoin, continues to operate globally while moving toward compliance with the GENIUS Act. In contrast, USAT is designed specifically for the U.S. market and its digital payments ecosystem.
Banking Infrastructure and USAT Institutional Custody.
Cantor Fitzgerald has been appointed as the reserve custodian and preferred primary dealer of USAT.
According to Tether, the USAT stablecoin is designed to meet institutional needs for transparency and reserve management.
Anchorage Digital Bank issues and supplies banking infrastructure, and exchanges and banking partners regulated in the U.S. are preparing to open access to the token within the domestic financial system.
Tether claimed that USAT can be trusted to operate at the institutional scale and meet federal regulatory requirements.
Availability of Distribution and Exchange
At the first rollout stage, USAT will be available on several crypto platforms, including Bybit, Crypto.com, Kraken, OKX, and MoonPay.
Moreover, the distribution plan is intended to provide access to both institutional participants and retail users seeking a regulated digital dollar product. Tether announced that U.S.-regulated exchanges and banking partners are being incorporated to provide access to the domestic financial system.
Tether Treasury Holdings and Market Role
The USAT launch is expanding Tether’s presence in traditional financial markets. Tether Group is now the 17th-largest holder of U.S. Treasuries worldwide, overtaking sovereign holders such as Germany, South Korea, and Australia.
USDT has become the most popular stablecoin in the world, facilitating international payment of digital dollars, trade, and reserves.
Tether stated that USAT represents an additional option for institutions seeking a dollar-backed token issued through a federally regulated bank.
The company described the launch as part of broader developments in digital-dollar infrastructure, as jurisdictions compete to shape the future of digital payments and money.
Paolo Ardoino, CEO of Tether, stated that USAT offers institutions a U.S.-issued dollar-backed token, while USDT has operated globally for more than a decade.
Additionally, Bo Hines stated that the USAT stablecoin is designed to meet federal regulatory expectations, with a focus on stability, transparency, and governance.
Tether stated that USAT was developed to meet these requirements and operate in a federally regulated environment. The company indicated that the token is designed to operate within compliance structures continuously at an institutional scale.
