Regulation Becomes Clearer, Tether Plans to Launch New Stablecoin for U.S. Market
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Regulation Becomes Clearer, Tether Plans to Launch New Stablecoin for U.S. Market
Tether said if Congress passes cryptocurrency legislation this year, it plans to create a new stablecoin for the U.S. market.
Navigating Web3 tides with focused insightsBy Yueqi Yang
Translated by Block unicorn
Tether, the world's largest stablecoin issuer to date, said it plans to create a new stablecoin for the U.S. market if Congress passes cryptocurrency legislation this year.
In an interview with The Information, Tether CEO Paolo Ardoino said the company would “move quickly” to launch a new token once anticipated stablecoin legislation is passed.
Last Friday, Ardoino said in an interview at Cantor Fitzgerald’s Midtown Manhattan office—where the firm manages Tether’s reserve assets such as U.S. Treasuries—that the new stablecoin would be “something capable of meeting the needs of banks, institutions, and payment processors.”
He said Tether plans to establish a U.S.-based entity, possibly named Tether USA, after U.S. legislation passes this year. Tether recently relocated its headquarters to El Salvador. He expects the new entity to be regulated at the federal level under the legislation. “Given that the legislation is expected to pass around August, or even before August as we anticipate, if this timeline holds, we will move swiftly,” he said.
“We are actively engaging with regulators, explaining to them the importance of what we’ve done outside the U.S., and what we can build within the United States,” he said.
Stablecoin legislation advancing rapidly in Congress could potentially bar Tether from the U.S. market due to its lack of registration in the country. Tether has a circulating market value of $144 billion, over $80 billion more than the second-largest stablecoin, operated by Circle.
Unlike other highly volatile cryptocurrencies, stablecoins are pegged to the U.S. dollar and backed by Treasuries and other safe assets to protect their value. They serve as convenient tools for cross-border fund transfers and crypto trading. Tether has faced criticism for the use of its stablecoin (known as tether or USDT) by drug traffickers and terrorist organizations. Tether says it cooperates with law enforcement to freeze assets used by criminals.
Tether has hired Cantor Fitzgerald to manage the assets backing its stablecoin. The company, previously led by Howard Lutnick until his appointment as U.S. Secretary of Commerce, continues to manage these assets.
Ardoino said the new stablecoin could be used for payments, digital economy applications, and interbank settlements. Tether has been investing in its own distribution network—a portfolio of companies that could drive adoption of its stablecoin—including a $775 million investment in the publicly traded video platform Rumble.
Competition over stablecoin legislation is intensifying as Congress moves quickly on legal frameworks. On Wednesday, the House Financial Services Committee approved a stablecoin bill, sending it to the full House. Last month, the Senate Banking Committee passed a similar bill, and President Donald Trump stated his goal is to sign stablecoin legislation into law before August.
Tether is also exploring ways for USDT to remain listed on U.S. platforms after the legislation passes. Ardoino said he is negotiating with lawmakers to explain how Tether operates, and hopes USDT can stay in secondary markets in the U.S.—meaning it would continue to be listed on U.S. cryptocurrency exchanges but focus primarily on international markets.
To enhance liquidity for its new stablecoin, he expects market makers holding both stablecoins to facilitate one-to-one conversions between the U.S. dollar-pegged stablecoin and USDT.
Ardoino said Tether has no plans for an IPO and does not need to raise funds for the planned U.S. entity. Circle, by contrast, has filed for an initial public offering.
Ardoino said potential conflicts of interest prevent him from meeting with Lutnick, but described him as a “private friend” and “a great man.”
His current main contact at Cantor is Brandon Lutnick, Howard Lutnick’s son. “A wonderful person, very smart. I’m very grateful he’s leading Cantor,” he said.
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