Tether Launches Dollar-Backed Stablecoin Designed to Comply With GENIUS Act

Tether has launched USAT, a U.S. dollar-backed stablecoin developed to operate within the federal stablecoin framework established by the GENIUS Act.

USAT is issued by Anchorage Digital Bank, N.A., a federally regulated stablecoin issuer, and the stablecoin’s designated reserve custodian and preferred primary dealer is Cantor Fitzgerald, Tether said in a Tuesday (Jan. 27) press release.

Another Tether stablecoin, USDT, continues to operate globally and is progressing toward compliance with the GENIUS Act, according to the release.

PYMNTS reported in October that USDT is the most traded cryptocurrency by volume around the world and that Tether CEO Paolo Ardoino said in September that the token is used by hundreds of millions of people in emerging markets.

Tether’s newest stablecoin, USAT, is now available to institutions and platforms, and it is designed to function within applicable regulatory requirements at an institutional scale, the Tuesday press release said.

During the first phase of USAT’s launch, it will be available on Bybit, Crypto.com, Kraken, OKX and MoonPay, per the release.

“USAT offers institutions an additional option: a dollar-backed token made in America,” Tether CEO Paolo Ardoino said in the release. “USDT has proven for more than a decade that digital dollars can deliver trust, transparency and utility at a global scale. USAT extends that mission by providing a federally regulated product designed for the American market.”

Anchorage Digital said in a Tuesday press release that USAT offers Americans a way to spend, send and receive money with “near-instant speed” and that the stablecoin’s issuance through Anchorage Digital Bank ensures that USAT is regulated by the Office of the Comptroller of the Currency.

“For five years, we’ve operated as a federally regulated bank, purpose-built for digital assets,” Anchorage Digital CEO and Co-founder Nathan McCauley said in the release. “USAT reflects what’s possible when stablecoin issuance is done inside the U.S. banking system, under real supervision, with real accountability, at real scale.”

Tether announced in September that it planned to launch a U.S.-regulated dollar-backed stablecoin called USAT and that it appointed the former executive director of the White House Crypto Council, Bo Hines, to lead the effort.

In the Tether’s Tuesday press release, Hines said: “Our focus is stability, transparency and responsible governance, ensuring that the United States continues to lead in dollar innovation.”