- Tether is developing a US-specific institutional stablecoin, with a launch announcement due within months.
- The GENIUS Act mandates audits and full fiat backing for stablecoins, creating a regulated US environment.
- Competition in the US market is heating up, but Tether claims technical superiority and global experience.
Tether has confirmed it is advancing plans to launch a US-focused institutional stablecoin, days after the GENIUS Act became law. CEO Paolo Ardoino stated the company is developing a domestic strategy aimed at institutional clients, with a public announcement expected in the coming months.
The GENIUS Act introduces a clear regulatory structure for stablecoins in the US, requiring full reserve backing by liquid assets and mandating annual audits for issuers with a market cap above US$50 billion (AU$75.66 billion). The law also sets conditions for overseas issuers operating in the country.
Ardoino, who attended the bill’s signing ceremony in Washington, said Tether is ready to interact with US regulators and is preparing for reentry into the American market. Tether had previously exited the US due to ongoing compliance hurdles.
USDT, Tether’s stablecoin, remains the largest globally with US$162 billion (AU$245.14 billion) in circulation. However, within the US, Circle’s USDC dominates, buoyed by stronger regulatory alignment and US$65 billion (AU$98.36 billion) in active issuance.
Related: Celsius Says Tether’s BTC Fire Sale Cost It $4 Billion, Judge Lets Lawsuit Proceed
Transparency Still a Priority
Despite being scrutinised for its lack of a full independent audit, Tether is working toward enhanced transparency. In June, it appointed Simon McWilliams as CFO to spearhead audit-related efforts. The company is also exploring obtaining an audit with Big Four firms.
As US banks like Wells Fargo and Bank of America look into issuing their own stablecoins, Ardoino admitted they might outperform Tether early on in the American market. However, he maintained that Tether’s technical capabilities and global experience give it an edge.
Asked whether Tether might follow Circle in pursuing a public listing, Ardoino dismissed the idea, confirming there were no such plans.
Related: Polymarket Considers Native Stablecoin to Capture Yield as It Eyes U.S. Comeback
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