Tether, known for its stablecoin USDT, has announced plans to create a new stablecoin that will be issued in the United States. This move represents an effort by Tether to engage more actively in U.S. regulation.
Introduction of the New Stablecoin
CEO Paolo Ardoino confirmed that the company intends to introduce a U.S.-issued stablecoin. This step marks Tether's most direct attempt to engage with the regulatory landscape in the U.S.
Compliance with Regulatory Requirements
Ardoino said the company is working on meeting anti-money laundering standards, conducting full audits, and completing a multi-year compliance roadmap. While USDT will likely remain focused on cross-border transactions, the new coin is designed for domestic use.
Market Competition for Stablecoins
The announcement of Tether's new stablecoin comes amid increasing competition, particularly with Circle’s USDC already established as a regulatory benchmark. Circle CEO Jeremy Allaire noted that the GENIUS Act is a validation of Circle’s transparent model based on full reserves and public disclosures. Unlike Tether, Circle has already aligned with most of the law’s provisions.
As the legal framework sharpens, the stablecoin landscape is shifting. For Tether, the launch of the new coin is an effort to legitimize its position, while Circle returns to a regulatory-compliant environment.
