Tether’s Strategic Move: Launching USA₮ for the US Market
Tether, the renowned entity behind the globally favored stablecoin USDT, has made a significant move by introducing a new dollar-pegged cryptocurrency, USA₮, specifically catering to the United States. This new token signifies Tether’s strategic entry into the US’s freshly regulated stablecoin sector, operating under the country’s recently established federal stablecoin framework, post the enactment of the GENIUS Act.
Tether’s Re-Entry into the US Financial Landscape
This launch underscores a pivotal transition for Tether, which had previously retreated from the US arena due to increased regulatory scrutiny. Back in 2021, Tether settled with the New York Attorney General over allegations concerning reserve misrepresentations, agreeing to an $18.5 million penalty. Since this settlement, Tether has predominantly concentrated its stablecoin endeavors outside the US, while USDT continued to cement its status as the leading stablecoin worldwide.
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Recently, Tether has announced the availability of USA₮ to US users, offering a digital asset backed by the dollar and fully compliant with federal regulations. This development follows a prior announcement revealing the token’s framework and appointing Bo Hines, a former executive director of the White House Crypto Council, as the CEO of Tether USA₮. The company aims for USA₮ to blend the extensive reach and operational expertise of USDT with a regulatory framework tailored for American financial institutions.
While USDT remains operational on the international stage, USA₮ is specifically crafted for the US market. The token’s design is to provide institutions with a digital dollar facilitated through a nationally chartered bank, ensuring alignment with conventional financial systems.
Key Collaborations: Anchorage and Cantor Fitzgerald
The issuance of USA₮ by Anchorage Digital Bank adheres strictly to the oversight mandates of the GENIUS Act. Tether is collaborating with US-regulated exchanges and banking partners to guarantee comprehensive access throughout the domestic financial ecosystem. Cantor Fitzgerald has been designated as the reserve custodian and preferred primary dealer for USA₮, ensuring secure asset management and transparency from the start.
Paolo Ardoino, Tether’s CEO, emphasized that the new token provides US institutions with an alternative for accessing “digital dollars.” He highlighted that USDT has, for over a decade, demonstrated the practicality and transparency of blockchain-based dollars on a global scale, with USA₮ building upon this legacy. Bo Hines further stated that the launch is a testament to meeting regulatory demands while ensuring stability and transparency, aiming to uphold responsible governance and keep the US at the cutting edge of dollar-based financial innovation.
During its initial rollout phase, USA₮ will be accessible through several major platforms, including Bybit, Crypto.com, Kraken, OKX, and MoonPay.
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