Tether, the company behind the world’s most popular stablecoin, USDT, unveiled a U.S.-regulated, dollar-backed token called USAT and appointed Bo Hines as head of its American division.
Anchorage Digital, a federally regulated crypto bank, will serve as the token’s issuer, while Cantor Fitzgerald will manage the reserves. The token will debut later this year, Tether CEO Paolo Ardoino said on stage at event in New York on Friday.
Hines, a lawyer and former director of the White House Crypto Council advising President Donald Trump on crypto policies, will lead Tether’s new U.S entity.
The move marks Tether’s first foray to create a stablecoin for U.S. oversight. It is designed to meet the requirements of the recently enacted GENIUS Act, the law setting federal rules for stablecoin issuers.
Tether’s USDT stablecoin has grown into a $169 billion asset with hundreds of millions of users worldwide. It is particularly popular in emerging markets, where high banking fees and inflation push people toward digital dollars. It has, however, faced questions from regulators and policymakers about oversight and transparency.
The new USAT token is being framed as a product for U.S. businesses and institutions, backed by disclosed reserves and governed under U.S. standards.
“By building USAT with compliance, transparency and innovation at its core, we are ensuring that the dollar remains the foundation of trust in the digital asset space,” Hines said in a statement.