Tether's Chief Executive Affirms Aim for Setting Up Business in the United States
Tether, the issuer of the world's largest stablecoin USDT, is making strides towards re-entering the United States market. The company, based in El Salvador, has faced regulatory challenges in the US, notably being banned from operating in New York. However, Tether is now preparing to launch a new U.S.-compliant stablecoin within the next year, as part of its efforts to rebrand itself as a cooperative partner to American lawmakers and law enforcement.
The launch of this new stablecoin will coincide with the passage of the GENIUS Act, the first regulatory framework for dollar-pegged cryptocurrencies in the US. This act is expected to provide a supportive regulatory environment for stablecoins like USDT and USDC, which are the two largest by market cap.
Tether's CEO, Paolo Ardoino, confirmed that the new stablecoin would be tailored to comply with local regulations. To ensure full compliance, Tether will implement full reserve backing, regular audits, and licensing as mandated by the GENIUS Act. This marks a significant shift for Tether, which has operated largely outside US regulatory frameworks previously.
The new stablecoin will target institutional clients, focusing on use cases such as payments, interbank settlements, and trading infrastructure within the regulated US financial system. In contrast, Tether's existing USDT token will continue to serve its global user base, particularly in emerging markets where demand and growth remain strong.
Ardoino also addressed ongoing concerns regarding Tether's transparency, particularly its failure to provide comprehensive audits. Tether releases quarterly attestations signed by BDO Italia SpA, rather than undergoing a full audit by one of the "Big Four accounting firms"-Deloitte, EY, KPMG, or PwC.
Tether's recent attestation reported total assets of $149.28 billion against liabilities of $143.68 billion for its fiat-backed stablecoin holdings. In 2021, Tether paid nearly $60 million to settle allegations from the state and the US Commodity Futures Trading Commission (CFTC) regarding misleading claims about its reserves.
Despite these challenges, Tether remains committed to serving unbanked populations, which Ardoino estimates to be around 30 billion people globally. However, no specific recent statements directly address targeted initiatives for unbanked populations within the US market under this new strategy.
In summary, Tether is actively preparing to expand its presence in the U.S. market by launching a new US-compliant stablecoin under the recently enacted GENIUS Act. This new stablecoin will be distinct from Tether's existing global USDT token and will focus specifically on institutional clients, targeting use cases such as payments, interbank settlements, and trading infrastructure within the regulated US financial system.
The launch of Tether's US-compliant stablecoin, tailored for institutional clients, signifies a strategic shift towards business collaboration with American lawmakers and law enforcement. This new cryptocurrency, compliant with the GENIUS Act, will facilitate smooth operations in the regulated US finance system, taking on use cases like payments, interbank settlements, and trading infrastructure. On the other hand, the existing USDT token continues to cater to its global user base, primarily focusing on emerging markets.
