Tether Launches USAT to Comply With US Stablecoin Rules

In the US, special laws for stablecoins have been in effect since last summer. Market leader Tether now complies with these Genius Rules with its new stablecoin USAT. The previous flagship, USDT, remains live.

A new addition to the stablecoin market: Tether has launched USAT, its version of a token pegged to the US dollar, which complies with the strict Genius rules in the US. “Made in America,” according to a Tether press release announcing the USAT launch. Genius requires issuers of US stablecoins to hold US dollars for 1:1 backing. For its stablecoin USDT, the global market leader, Tether primarily relies on US Treasury bonds to guarantee this backing.

USAT is issued for Tether by crypto bank Anchorage Digital

Therefore, Tether is taking a different approach with USAT. The issuer is Anchorage Digital Bank, which holds a US banking license and focuses on the crypto industry. CEO Nathan McCauley stated in a press release , “Stablecoins are rapidly becoming part of critical financial infrastructure.” Tether has also registered a subsidiary for USAT in the US, but its headquarters remain in El Salvador. USAT is launching in the Ethereum ecosystem and, according to blockchain data, is aiming for a market capitalization of $20 million at launch.

By comparison, USDT, Tether’s original stablecoin, currently has a market capitalization of approximately $186 billion and is supported in versions for over a dozen ecosystems, including Ethereum , Tron, Solana, Aptos, and others.

Tether has become a highly profitable company through USDT. In 2025, it achieved an annual profit of over $10 billion, and in 2024, it was $13 billion. These profits largely stem from the interest payments Tether receives on its holdings of US Treasury securities. This model is not permitted for USAT, but Tether secures a legal presence in the US with its new stablecoin. The crypto company confirms that it is also preparing USDT for Genius – but given the differences in its business model with USAT, this is unlikely to be a priority.

Conclusion: USAT as an important part of Tether’s US strategy

As a partner for the market entry of USAT, Tether has secured big names like Bybit, crypto.com , Kraken, OKX, and Moonpay. However, US media outlets are reporting that USDT, as the number one global stablecoin, is already readily available in the United States. Whether private users will switch to USAT remains to be seen. Tether is targeting institutional clients for USAT – a market segment also occupied by Ripple with its stablecoin RLUSD.

For now, USAT can likely be seen as Tether’s commitment to the US market without jeopardizing its cash cow, USDT. But the launch underscores the consequences of the Genius legislation, with which the US aims to support the US dollar as the global reserve currency, including through stablecoins. Incidentally, Tether has chosen a symbol for USAT that would suit Superman or other superheroes and raises high expectations.

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(Featured image by DrawKit Illustrations via Unsplash)

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