Besides USDT, why is Tether launching the new token USAT?

The world’s largest stablecoin issuer, Tether(, recently made a significant move. They officially established a US branch, TetherUSA, and are planning to launch a brand new US dollar stablecoin—USAT. This is no small matter, as it signifies Tether’s direct confrontation with the US-regulated stablecoin market leader, Circle. A showdown among giants is about to unfold.

USAT: Tether’s “American Ticket”

USAT can be described as a “compliance pass” specifically designed for the US market. Its design philosophy strictly follows the upcoming US GENUIS Act. This legislation is seen as the regulatory framework for stablecoins in the US, and with it, stablecoin issuance gains official recognition.

The issuer of USAT is not Tether itself but their partner—Anchorage Digital, which is federally regulated. This move is clever, allowing Tether to avoid some potential regulatory risks while leveraging Anchorage Digital’s compliance credentials to endorse USAT. Additionally, Cantor Fitzgerald, a financial giant, will be responsible for USAT’s reserve custody, adding an extra layer of transparency and security.

Big Names Join: Fighting for Regulatory “Access”

To better establish itself in the US market, TetherUSA has appointed a heavyweight as CEO—Bo Hines. He is not only a former congressional candidate but also a cryptocurrency policy advisor to Trump. This appointment sends a clear signal: Tether hopes to leverage Hines’ connections and background to better communicate with US regulators and pave the way for USAT’s promotion.

The “Three Kingdoms” of Stablecoins

When it comes to stablecoins, Tether’s USDT is undoubtedly the leader, with an unmatched market share. However, USDT mainly targets non-US users and crypto exchanges, and its reserve transparency has long been a subject of controversy.

On the other hand, Circle’s USDC is known for its high transparency and rigorous periodic audits, earning the trust of US financial institutions and institutional investors, firmly holding the top position in the compliant stablecoin market.

Now, with USAT entering the scene, the landscape becomes more interesting. Thanks to its compliant design and strong partnerships, USAT is likely to attract institutional investors seeking alternatives to USDC or looking to diversify risk. The emergence of USAT will undoubtedly impact Circle’s market share, making the stablecoin market competition even more intense.

Tether’s Ambitions and Challenges

Tether’s move into the US market is not just about competing with Circle. Their ultimate goal is to capture the largest global institutional market. As a global financial hub, the US has vast institutional funds and high-net-worth users—an ideal growth opportunity for Tether.

If successful, USAT could provide Tether with a globally trusted, compliant US dollar stablecoin, further solidifying its dominance in the cryptocurrency field.

Of course, this path also faces many challenges:

Regulatory Uncertainty: Although USAT’s design complies with the GENUIS Act, the US regulatory environment is unpredictable. Any change could impact USAT’s future.

Trust Rebuilding: Tether has long been questioned over the transparency of USDT’s reserves. Despite USAT’s compliant design and backing partners, gaining market trust will take time.

Counterattacks from Competitors: Competitors like Circle will not sit idly by. They may respond by strengthening compliance, lowering fees, or launching new products to counter Tether’s challenge.

In summary, Tether’s launch of USAT is both a strategic move into the US compliant market and a formal declaration of war against rivals like Circle. This showdown among giants will profoundly influence the future landscape of the stablecoin market and drive the entire cryptocurrency industry toward greater regulation and transparency.