TLDR
- Tether CEO Paolo Ardoino revealed plans for a new US-based stablecoin separate from USDT
- The company may create a point-of-sale merchant service similar to Square
- Trump administration is pushing for stablecoin legislation by August 2025
- Tether reported $13 billion in profits last year and has $20 billion in undistributed profits
- The new stablecoin would target US consumers and institutions, unlike USDT which serves international markets
Tether, the company behind the world’s largest stablecoin USDT, is planning to launch a new stablecoin specifically for the US market.
This move comes as the Trump administration pushes for clearer cryptocurrency regulations, with President Trump calling for stablecoin legislation to be ready by August.
In recent interviews, Tether CEO Paolo Ardoino outlined the company’s vision for a blockchain-powered payment network in the United States.
Unlike USDT, which primarily serves international markets and developing countries, the new stablecoin would be designed for US consumers and institutions.
“Here’s the big difference: In the US, people would use a stablecoin as their checking account, while, outside the US, people use USDT as their savings,” Ardoino explained in an interview.
Tether currently doesn’t offer its products to US customers according to its website. This restriction could change if favorable regulations are established.
Payment Network Vision
The company is likely to set up a new US-based entity to issue the new token. When asked about plans for where Americans could spend the new stablecoin, Ardoino mentioned Rumble, the censorship-free YouTube competitor that Tether acquired.
More interestingly, when directly asked if Tether would consider building a point-of-sale merchant services offering similar to Square but including stablecoins, Ardoino hinted:
“I cannot spoil all our strategy, but you are on the right track.”
This suggests Tether may be planning a comprehensive payment ecosystem that would allow everyday consumers to use stablecoins for purchases. The challenge, however, is getting people to hold stablecoins in digital wallets and convincing merchants to accept them.
The regulatory landscape for cryptocurrencies in the US is changing rapidly. The Securities and Exchange Commission has paused or dismissed most legal actions against cryptocurrency entities, and its Division of Corporate Finance recently clarified that stablecoins are not classified as securities.
Institutional Focus
While Tether sees potential in the US consumer market, the company is also considering a stablecoin aimed specifically at institutional clients. This institutional-grade stablecoin would be tailored to meet the needs of large-scale, regulated institutions with different infrastructure requirements.
“The new legislation gives us the opportunity to explore the creation of a US-based, institutional-grade stablecoin,” Ardoino told The Block. “Unlike the stablecoins we’ve developed to support emerging markets and financial inclusion — such as in Africa — this would be tailored to meet the needs of large-scale, regulated institutions with very different infrastructure requirements.”
Tether’s potential expansion comes as its main competitor, Circle (issuer of USDC), prepares for an initial public offering in the US with a targeted valuation of $5 billion. However, Ardoino appears unconcerned about this competition.
“We have $20 billion in profit that we did not distribute to the shareholders. So I’m pretty sure that we can move at the speed of light,” he stated.
USDT remains the dominant stablecoin globally with around 70% of the overall market. It has approximately $144-145 billion tokens in circulation, according to recent data.
The company reported $13 billion in profits last year, demonstrating strong financial performance despite broader market challenges in the cryptocurrency space.
Financial Transparency
Tether has faced ongoing scrutiny for not providing a full independent audit of its stablecoin reserves. Instead, the company releases quarterly attestations signed by BDO Italia.
Addressing this issue, Tether recently hired Simon McWilliams as its new chief financial officer to lead efforts toward securing a full audit. Ardoino has called obtaining an audit from a Big Four accounting firm — Deloitte, EY, PwC, or KPMG — a “top priority” and said discussions are underway.
In contrast, Circle has had its financials audited by Deloitte since 2022, according to its website.
Despite these transparency concerns, Tether has survived two major cryptocurrency market downturns, which has eased some fears about its stability.
Tether will wait for US stablecoin legislation to be enacted before launching its new token. This approach will provide regulatory clarity and a more structured framework for operations.
The race to dominate the US stablecoin market is expected to be competitive, with other major financial players likely to enter once regulations are established.
Industry experts emphasize the necessity of a cohesive federal framework for stablecoins. Jonathan Levin, co-founder and CEO of Chainalysis, noted that without such a framework, it remains challenging for financial services firms and international enterprises to adopt stablecoins on a larger scale.
Tether, which pioneered the stablecoin industry in 2014, appears well-positioned to capitalize on these regulatory developments. While other companies have announced plans for stablecoins, Tether has both the experience and financial resources to move quickly once legislation is finalized.
