On September 12, 2025, stablecoin giant Tether announced its plan to launch USAT, a U.S.-regulated, U.S. dollar-backed stablecoin, and appointed Bo Hines as the future CEO of Tether USAT. According to Tether's official introduction: USAT is specifically designed to serve the U.S. market and support U.S. regulatory standards, and will become the cornerstone of the next generation of American commerce, trade, and finance. As part of the Tether ecosystem, USAT will set a new benchmark for utility stablecoins in the United States, aiming to provide long-term value, robust governance, and practical application.

What are the new highlights of USAT? What is the significance of Tether's move?

I. New Highlights of USAT

The biggest highlight of USAT is "compliance." While being U.S.-regulated, USAT has also hired Bo Hines, the former Executive Director of the White House Crypto Council, as its CEO.

1. U.S. Regulated
   USAT aims to be a U.S.-regulated, U.S. dollar-backed stablecoin, complementing USDT, which has a circulation of approximately $169 billion.

Tether CEO Paolo Ardoino stated that Tether aims to launch a native U.S. stablecoin called USAT by the end of this year. This stablecoin will be regulated in the U.S. under the U.S. "GENIUS Act," and the company is not seeking to go public.

Tether pointed out: The launch of USAT "reflects Tether’s commitment to offering a U.S. regulated dollar stablecoin, backed by transparent reserves, strong governance, and U.S. leadership from day one."

As a U.S.-regulated stablecoin, USAT aims to provide businesses and institutions with a digital alternative to cash and traditional payment methods.

USAT will have Anchorage Digital, the first and only federally chartered crypto bank, serve as the USAT issuer compliant with GENIUS Act rules—the bank holds a national trust bank charter from the U.S. Office of the Comptroller of the Currency; Cantor Fitzgerald will serve as the designated reserve custodian for USAT and act as a primary dealer; USAT utilizes Tether's Hadron technology platform, supporting the tokenization of real-world assets; Tether plans to operate its U.S. business in Charlotte, North Carolina, while basing its international headquarters in El Salvador.

2. Former White House Crypto Council Executive Director Hines Appointed CEO
   Bo Hines, the former Executive Director of the White House Crypto Council during the Trump administration, has been appointed as the CEO of Tether's newly established U.S. subsidiary.

Hines, who was previously appointed as a "strategic advisor" to the largest stablecoin issuer, will be responsible for overseeing the launch of Tether's new stablecoin, USAT.

Hines has been active at the intersection of governance, law, and financial innovation. He noted: "I am honored to lead the preparations for USAT, building a U.S. regulated, U.S. dollar-backed stablecoin to strengthen America’s position in the global economy. By building USAT with compliance, transparency, and innovation at its core, we will ensure the U.S. dollar remains the bedrock of trust in the digital asset space."

Hines' appointment is seen as a strategic move to bridge the gap between Tether and U.S. regulators, who have long scrutinized Tether for its opaque reserve management and alleged ties to illicit finance.

II. The Significance of Tether Launching USAT

1. Expanding into the U.S. Market
   Hines stated that Tether's expansion in the U.S. market over the next two years will be "very rapid."

Paolo Ardoino stated: "USDT has become the dominant dollar stablecoin in emerging markets, serving nearly 500 million people in Africa, Latin America, and Southeast Asia. It was built for the unbanked and underserved in developing regions. In contrast, USAT is a brand designed for the U.S. market, compliant with domestic regulations, and aims to expand financial accessibility for still underserved communities within the U.S."

Although USDT dominates the global stablecoin market, it has never complied with the U.S. regulatory framework. Amid increasingly strict stablecoin regulations, Tether seemed to be drifting away from the U.S. market. The launch of USAT is a crucial step for Tether to adapt to the regulatory demands of the U.S. market. USAT can enable Tether to smoothly enter the U.S. market, meeting the demand for dollar stablecoins from U.S. businesses and institutions. Leveraging the vast U.S. financial system, it can expand its business space and further increase its market share.

2. Competing with Rivals
   According to CryptoQuant, the market capitalization of stablecoins has grown by about 34% this year. As of September 11, USDT's market cap ranked first at $169.4 million, holding a 58% market share, while USDC steadily held second place with $72.4 million. The stablecoin market size is expected to grow from the current $270 billion to trillions of dollars in the coming years.
   Tether's new product, USAT, is positioned to directly compete with USDC and other U.S.-regulated stablecoins, especially as institutional demand for stablecoins in cross-border payments and remittances continues to grow.

Paolo Ardoino stated: "I think it's a very exciting moment because we are facing huge pressure from competitors who want to create a monopolistic environment in the U.S., and we believe Tether is the best product on the market."

U.S. issuers like Circle, Paxos, and Ripple are all competitors to USAT. USDC already exists ahead of USAT and holds a significant lead in the U.S. Whether USAT can truly succeed depends on its ability to defeat Circle while also coping with increasing competition from companies like Stripe, Fireblocks, and Hyperliquid.

3. Strengthening the U.S. Dollar's Position in the Stablecoin Sector
   Tether CEO Paolo Ardoino stated: "For a decade, as a founder of the stablecoin industry, Tether has issued USDT, the backbone of the digital economy, and has now issued a dollar stablecoin for hundreds of millions of underserved people in emerging markets, proving that digital assets can deliver trust, resilience, and freedom globally. Today, with the launch of USAT and the appointment of Bo Hines as the future CEO of Tether USAT, we are taking the logical next step to bring those same opportunities to the United States under the world-leading U.S. regulatory framework. Tether is already one of the largest holders of U.S. Treasuries because we deeply believe in the enduring strength of the U.S. dollar. USAT is our commitment to ensuring the U.S. dollar not only remains dominant but thrives in the digital age—through products that are more transparent, more resilient, more accessible, and more unstoppable than ever before."

With USAT, the U.S. dollar can penetrate deeper into various emerging fields such as digital asset trading, cross-border payments, and DeFi, consolidating its dominant position in the global financial system. Although Tether previously did not operate in the U.S., Tether has always believed that USDT has enhanced the dollar's influence by giving global investors access to it.

4. Setting a New Benchmark for the Stablecoin Industry
   Subject to strict regulatory standards and backed by transparent reserves, USAT will set a new benchmark for the compliant development of the stablecoin industry in the United States.

Tether's launch of USAT sends a clear signal to the stablecoin track: the future of stablecoins requires operation within a compliance framework. Other stablecoin issuers will also proactively seek compliance paths, thereby driving the entire stablecoin industry towards compliance and attracting more traditional financial institutions and ordinary investors.

III. Conclusion

USAT will be issued under the framework of the "GENIUS Act," marking a significant breakthrough for Tether beyond its traditional offshore model and demonstrating its determination to expand its influence within the U.S. financial system. The appointment of Hines as CEO of USAT fulfills Tether's commitment to providing a U.S.-regulated stablecoin. The birth of USAT is a product of the deep integration of traditional finance and emerging digital finance, as well as an important attempt to reshape the landscape of the U.S. stablecoin market.