Key Highlights
- Tether announces USAT, a stablecoin backed by U.S. Treasury bonds and cash reserves
- This announcement comes amid major developments in Tether for better transparency and U.S. regulatory compliance
- Bo Hines, a former member of the White House Crypto Council, was named CEO of Tether’s U.S. operations
Tether, the company behind the world’s largest stablecoin, USDT, has announced the launch of a new “digital dollar”, which is designed specifically for the American market.
Tether invented the stablecoin. Now we’re bringing it home 🇺🇸
Meet USA₮ — the digital dollar for creators, earners, and everyone left behind. Made for America. Fast. Borderless.
Tether is powering digital dollars for the next generation.
Coming soon.. pic.twitter.com/1ANlhR1oqR
— USAT (@USAT_io) September 12, 2025
What is USAT: New Stablecoin of Tether
The new stablecoin, called USA₮ or USAT, was unveiled on September 12, 2025, at a high-profile event in New York City. Unlike its global counterpart, USDT, which has faced scrutiny over its reserve backing and transparency, USAT is being built from the ground up to comply with U.S. regulations.
This announcement comes amid positive regulatory developments for USD-pegged stablecoins under pro-crypto President Donald Trump. The move shows a strategic effort to build trust with U.S. regulators and consumers while expanding its influence in the world’s largest economy.
Tether CEO Paolo Ardoino revealed that the coin will be fully backed by U.S. Treasury bonds and cash-like assets, with reserves held in isolation from Tether’s other operations to allow for regular audits and easy verification.
The announcement shows a major development for the Tether ecosystem, which has historically operated primarily from outside the United States, often facing criticism from regulators and lawmakers.
With USAT, the company is making a clear play for legitimacy in the American financial system at a time when the regulatory environment has become more favorable under the Trump administration’s pro-crypto policies. For example, recently, Trump signed the first legislation, the GENIUS Act, for
Alongside the stablecoin reveal, Tether named Bo Hines as the CEO-designate of its U.S. operations. Hines brings considerable political and regulatory experience to the role, having recently served as head of the White House Crypto Council, where he helped shape digital asset policy, including the GENIUS Act of 2025 that established clear guidelines for stablecoin issuance and oversight.
The technical infrastructure for USAT will run on Tether’s proprietary Hadron platform, which tokenizes real-world assets like government bonds.
Anchorage Digital, a federally chartered digital asset bank, will serve as the issuer, while Cantor Fitzgerald will act as the primary custodian for the reserves.
For American consumers and businesses, USAT promises the stability of the U.S. dollar with the efficiency of blockchain technology. It will enable faster, cheaper transactions for everything from remittances to corporate payments without the volatility typically associated with cryptocurrencies. The stablecoin is expected to launch before the end of 2025, pending final regulatory approvals.
This move also put Tether to compete more directly with other U.S.-dollar stablecoins like Circle’s USDC, which has gained significant traction among institutional investors. By establishing a compliant, transparent offering specifically for the American market, Tether aims to address past criticisms about its reserve management and operational transparency.
The development reflects broader trends in both the cryptocurrency industry and the regulatory landscape. With the GENIUS Act providing clearer guidelines for stablecoin issuance and with the Trump administration generally supportive of digital asset innovation, Tether’s timing appears strategic.
The company has been gradually increasing its U.S. presence, investing billions in American Treasury bonds and infrastructure projects, while also collaborating with law enforcement agencies like the FBI.
As Tether transitions from its offshore roots to a more regulated operating model, the success of USAT will likely depend on its ability to win trust from both regulators and the public.
If successful, it could significantly expand the use cases for stablecoins in everyday transactions while further bridging the gap between traditional finance and the digital asset ecosystem.
