TLDR
- Tether launched USAT, a new U.S.-regulated stablecoin under the GENIUS Act framework, aimed at institutional users
- Anchorage Digital Bank serves as the issuer and Cantor Fitzgerald handles reserve custody for USAT
- The stablecoin is listed on Bybit, OKX, Kraken, Crypto.com, and Moonpay with over 10 million tokens in supply
- Analysts view USAT as the first credible domestic competitor to Circle’s $72 billion USDC stablecoin
- Former White House crypto adviser Bo Hines leads USAT as CEO while Tether’s flagship USDT will continue operating globally
Tether announced the launch of USAT, a new stablecoin designed specifically for the U.S. market under the GENIUS Act framework. The move marks Tether’s first attempt at creating a federally regulated dollar token aimed at institutional users.
Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America 🇺🇲🚀
Read more: https://t.co/rIMQTQ7ipX
— Tether (@tether) January 27, 2026
Anchorage Digital Bank, a federally chartered crypto bank, serves as the issuer of USAT. Cantor Fitzgerald will handle reserve custody and act as the preferred primary dealer for the new stablecoin.
Etherscan data shows USAT has gone live on the Ethereum network with a total supply of just over 10 million tokens. The stablecoin will be available on major crypto exchanges including Bybit, OKX, Kraken, Crypto.com, and the fintech platform Moonpay.
Bybit, Crypto.com, and OKX have already confirmed the listing. Bitfinex also announced plans to list USAT soon.
The GENIUS Act, signed into law by President Donald Trump last July, requires monthly audits and 1:1 backing with the U.S. dollar and short-term treasury bills. The legislation also prohibits stablecoin issuers from distributing yields to users.
Former White House crypto adviser Bo Hines serves as CEO of USAT. Tether first announced plans for the stablecoin in September last year.
Analysts see USAT as a potential challenger to Circle’s USDC, which has a market capitalization of $72 billion. USDC grew twice as fast as Tether’s flagship USDT last year.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, called USAT “a threat to USDC.” She said the new stablecoin is designed to attract clients that would otherwise use USDC.
Competition for Institutional Dollars
Circle has long positioned USDC as the preferred choice for banks, fintechs, and exchanges operating under U.S. oversight. USAT enters this market with backing from traditional finance firms and regulatory compliance built in.
Acheson pointed to several advantages USAT may have. These include partnerships with firms like Cantor Fitzgerald and the potential to connect with Tether’s global network through USDT conversion.
She also noted that Bo Hines’ involvement may help address concerns about Tether’s reserve practices. This could reduce hesitation among institutional users.
Nicholas Roberts-Huntley, CEO of Blueprint Finance, said Tether’s U.S. entrance shows that demand for regulated dollar tokens among banks and fintechs is real. The stablecoin market is shifting from focusing on size to emphasizing regulatory positioning and institutional trust.
Roberts-Huntley said USDC has operated without a credible domestic competitor until now. Other entrants lacked the scale, distribution, or regulatory profile to challenge Circle’s position.
Risks for Both Companies
Owen Lau, analyst at ClearStreet, took a more cautious view. He said it is too early to gauge the impact but called USAT “a manageable risk” for Circle.
Lau also noted potential risks for Tether itself. USAT could eat into USDT’s existing market share, creating what he called a “cannibalization risk.”
Tether’s flagship stablecoin USDT has a market capitalization of $186 billion and dominates global crypto trading and emerging markets. The company stated that USDT will continue to operate globally and work toward GENIUS Act compliance.
Tether CEO Paolo Ardoino said USAT offers institutions “an additional option: a dollar-backed token made in America.” He emphasized that USDT has proven for over a decade that digital dollars can deliver trust, transparency, and utility at global scale.
Bo Hines said USAT is designed to meet federal regulatory expectations. The focus is on stability, transparency, and responsible governance to ensure the United States continues to lead in dollar innovation.
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