Tether has launched its first US-compliant stablecoin, USA₮, following the introduction of the GENIUS Act.
On September 12, The stablecoin issuer announced it plans to launch plans to launch USA₮ towards the end of 2025 the year.
Tether already circulates a US-dollar stablecoin – USDT – which remains unregulated across the US and Europe.
Tether’s new stablecoin will specifically comply with the newly passed GENIUS Act in what the company described as a “new benchmark” for stablecoin compliance.
The GENIUS Act is the US’ first regulatory framework designed for stablecoin issuers.
It designates US-dollar backed stablecoins be:
- backed 1:1 with a high quality liquid asset (US dollars, short term US treasuries, or bank deposits)
- These reserves must be segregated, and maintained by qualified custodians and not commingle with operating assets
- Monthly public disclosures of reserve compositions and audited financial statements for large issuers (over $50 billion)
- Comply with certain anti-money laundering regulations, and redemption policies..
Within its announcement, Tether stated USA₮ will provide businesses and financial institutions a digital alternative to cash and traditional payment rails.
The stablecoin will utilise the ‘Hadron by Tether’ technology, a real-world-asset tokenisation platform which can also tokenise stocks, commodities, and funds, beyond the US dollar.
“Tether is already one of the largest holders of U.S. Treasuries because we believe deeply in the enduring power of the dollar,” said Paolo Ardoino, CEO of Tether.
“USA₮ is our commitment to ensuring that the dollar not only remains dominant in the digital age, but thrives – through products that are more transparent, more resilient, more accessible, and more unstoppable than ever before.”
Strong regulatory focus
Overseeing USA₮’s regulatory compliance will be newly appointed CEO Bo Hines. He is the former Executive Director of the White House Crypto Council and has experience in US financial governance and law.
He will lead Tether’s latest push to become more regulatory compliant, starting in the US. Tether’s other major stablecoin, USDT – the largest stablecoin by market capitalisation – is currently not registered as a regulated stablecoin in the US.
USDT has also had issues being compliant in other markets, in particular the European Union (EU). Tether ultimately pulled and delisted Tether on all EU-based exchanges as it did not comply with the region’s Markets in Crypto Assets (MiCA) stablecoin regulation.
Although USDT has gained approval in markets such as the United Arab Emirates and Thailand, its lack of regulatory compliance elsewhere – particularly in contrast to rival USDC’s approval in Europe – has raised questions over its long-term future.
USA₮ appears to be Tether’s answer for a regulatory compliant stablecoin, but it is currently only being designed to comply with the US GENIUS Act.
“I am honored to lead USA₮ as we prepare for its launch, creating a U.S.-regulated dollar-backed stablecoin designed to strengthen America’s role in the global economy,” said Bo Hines, CEO-Designate of Tether USA₮.
“By building USA₮ with compliance, transparency, and innovation at its core, we are ensuring that the dollar remains the foundation of trust in the digital asset space.”
