Tether, the leading stablecoin provider by market value, is planning a comeback in the U.S. with a new, fully compliant domestic stablecoin.
The move follows the recent enactment of the GENIUS Act. The landmark regulatory framework is designed to govern the stablecoin ecosystem within the United States.
In an interview with Bloomberg, Tether CEO Paolo Ardoino revealed that the company is close to announcing a new U.S.-focused stablecoin, designed from the ground up to meet the American regulatory standards. The token is expected to launch by the end of 2025. It will cater primarily to institutions such as banks, fintech firms, and payment processors.
GENIUS Act: A Game-Changer for Crypto Regulation
President Donald Trump signed the GENIUS Act into U.S. law on July 17, 2025. The law, titled Global Enforcement and National Innovation for Ubiquitous Stablecoins, has introduced a dual-track regulatory system for stablecoins. It offers a legal framework for domestic and international issuers, requiring rigorous reserve backing, third-party audits, and redemption guarantees.
For Tether, long criticized in the U.S. for its opaque practices, the act provides a long-awaited chance to operate on U.S. soil within a clearly defined legal environment. As part of its compliance efforts, the company will register USDT under the foreign issuer pathway. At the same time, it will launch its new U.S.-compliant token in parallel.
New Domestic Stablecoin to Target Institutional Market
The new stablecoin will be backed one-to-one with U.S. dollars or Treasuries, stored with licensed custodians, and monitored by federal regulators. Tether is currently laying the groundwork, onboarding local custodians, establishing banking ties, and aligning with federal standards.
Unlike its global counterpart, USDT, the new stablecoin will be exclusively for institutional users. These include banks, payment processors, and fintech companies. Ardoino emphasized that this new direction reflects a fundamental transformation in Tether’s approach to transparency and regulation.
“This isn’t just about entering the U.S. market, it’s about rebuilding our presence with institutional credibility,” Ardoino stated.
Tether to Face Stiff Competition
Tether’s re-entry comes amid an increasingly competitive U.S. stablecoin space. Circle, the issuer of USDC, already holds a dominant position thanks to years of proactive licensing and compliance efforts. It maintains money transmitter licenses in 46 states and is registered with FinCEN. The firm also holds an e-money license in France under MiCA regulations.
Meanwhile, banking giants including JPMorgan, Citigroup, Bank of America, and Wells Fargo are developing their own stablecoins under the GENIUS Act, adding to the competitive pressure.
Ardoino acknowledged the competitive challenge but remained confident in Tether’s technical edge and global experience.
“Our technology stack and market knowledge give us a unique advantage. We may be new to the U.S. market, but we’re not new to this industry,” he said.
Tether plans to leverage its recent financial success, $13 billion in net profits last year, to support its U.S. expansion and compliance efforts. The company is preparing for a phased rollout, with full operations within the next three years.
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