KEY FACTS: Tether has launched USAt (USA₮), a federally regulated, dollar-backed stablecoin specifically designed for the U.S. market, operating under the GENIUS Act, the first comprehensive federal framework for payment stablecoins enacted in July 2025. Issued by Anchorage Digital Bank, a federally chartered institution, and with reserves custodied by Cantor Fitzgerald for 1:1 backing with high-quality assets, USAt emphasizes compliance, transparency, and institutional-grade stability as a complement to Tether's global USDT stablecoin. The launch occurred on January 27, 2026, starting with an initial circulating supply of $10 million as an ERC-20 token on Ethereum, and it is now available for trading and use on major platforms including Bybit, Crypto.com, Kraken, OKX, and MoonPay. Led by CEO Bo Hines, a former White House crypto adviser, the product aims to provide U.S. institutions and users with a "Made in America" digital dollar option, with Tether CEO Paolo Ardoino highlighting that it extends USDT's proven trust and utility while offering an additional compliant choice for American markets.
Image source: Tether
Tether Launches Fully Regulated USAt Stablecoin for the U.S. Market
Tether, the company behind the world's largest stablecoin USDT, has officially launched USAt (USA₮), a new dollar-pegged stablecoin designed exclusively for the U.S. market. This move marks Tether's strategic re-entry into the United States, complying with the newly established federal regulatory framework under the GENIUS Act. USAt is issued by Anchorage Digital Bank and backed by reserves managed by Cantor Fitzgerald, and aims to provide a secure, transparent, and institutionally focused alternative in the growing stablecoin ecosystem.
The launch, announced on January 27, 2026, comes after months of anticipation following Tether's initial reveal in September 2025. With an initial circulating supply of $10 million as an ERC-20 token on the Ethereum blockchain, USAt is positioned as a "Made in America" digital dollar, emphasizing compliance, stability, and utility for American users and institutions. This initiative is seen as Tether's direct challenge to competitors like Circle's USDC, which has dominated the U.S.-regulated stablecoin space.
Tether has long been a powerhouse in the crypto world, with its flagship USDT stablecoin boasting a market capitalization exceeding hundreds of billions of dollars globally. USDT, pegged 1:1 to the U.S. dollar, has become a cornerstone for trading, remittances, and DeFi applications worldwide. However, Tether's operations have faced scrutiny over the years, including questions about reserve transparency and regulatory compliance, particularly in the U.S. where stricter rules have limited its reach. The introduction of USAt is Tether's attempt to address these concerns by operating under a fully regulated U.S. framework.
Unlike USDT, which is issued globally and has been restricted from certain U.S. markets due to regulatory hurdles, USAt is tailored specifically for domestic use. It is issued by Anchorage Digital Bank, the first federally chartered bank authorized to custody digital assets and issue stablecoins at the national level. Cantor Fitzgerald, a prominent Wall Street firm, serves as the custodian for the reserves, ensuring 1:1 backing with U.S. dollars and providing enhanced visibility and security.
Stablecoins, which aim to maintain a stable value by being backed by traditional assets like fiat currency or commodities, have surged in popularity as bridges between traditional finance and blockchain technology. According to industry data, the total stablecoin market cap has grown exponentially, facilitating trillions in annual transaction volumes.
Central to USAt's design is compliance with the GENIUS Act, landmark legislation passed by U.S. lawmakers in July 2025. Officially known as the "Groundbreaking Economic Nexus for Innovation in U.S. Stablecoins" Act, it establishes the first comprehensive federal framework for payment stablecoins. The Act mandates strict requirements for reserves, including 1:1 backing with high-quality assets like U.S. Treasuries or cash equivalents, regular audits, and transparency reports to prevent risks like those seen in past crypto failures.
The GENIUS Act also restricts what reserves can include, aiming to protect consumers and maintain financial stability. For Tether, this means USAt operates under a "dedicated federal regime," as described by the company, making it suitable for America's most demanding institutions. Proponents of the Act argue it fosters innovation while mitigating systemic risks, positioning the U.S. as a leader in digital dollar technology.
Tether's decision to launch USAt under this framework indicates a shift in the industry toward regulatory alignment. According to Tether CEO Paolo Ardoino, USDT has proven for more than a decade that digital dollars can deliver trust, transparency, and utility at a global scale. The creation of USAt is to extend that mission by providing a federally regulated product designed for the US. Ardoino further emphasized that USAt offers institutions "an additional option, that is, a dollar-backed token made in America."
Leading the charge for USAt is Bo Hines, who was appointed CEO of Tether's U.S. division in September 2025. Hines, a former advisor on Donald Trump's Council of Advisers on Digital Assets, brings a blend of political and crypto expertise to the role. Hines, speaking in support of the launch, says that USAt is a digital dollar that is designed to meet federal regulatory expectations. Hines furthered that the focus is stability, transparency, and responsible governance, ensuring that the United States continues to lead in dollar innovation.
Operationally, USAt starts with a modest $10 million supply but is expected to scale rapidly. It is currently available on major platforms including Bybit, Crypto.com, Kraken, OKX, and MoonPay, allowing U.S. users to access a compliant dollar-backed token for transactions, settlements, and more. The token's infrastructure is powered by Hadron by Tether, which handles issuance and redemption, further integrating it into the company's ecosystem.
Industry partners have quickly shown support. FalconX, a leading crypto prime brokerage, announced its backing, with Head of Sales Josh Barkhordar noting that FalconX is proud to support the launch of USAt, and that his team is eager to help facilitate liquidity for stablecoins designed to operate within the framework of the GENIUS Act.
Competitively, USAt positions Tether to rival Circle's USDC, which has been the go-to regulated stablecoin in the U.S. With USDC's focus on compliance and partnerships with traditional finance, the entry of USAt could intensify the "stablecoin wars," driving innovation in areas like cross-border payments, supply chain finance, and real estate transactions. Experts predict this could lead to lower fees, higher liquidity, and broader adoption, ultimately benefiting the U.S. economy by keeping dollar dominance in the digital realm.
The launch of USAt shows the maturing crypto industry under U.S. oversight. As regulations like the GENIUS Act take hold, companies are adapting to balance innovation with accountability. Tether plans to expand USAt's availability and explore integrations with payments infrastructure. This launch reinforces Tether's dominance and also signals a vote of confidence in U.S. regulatory progress.
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