USAT places Tether inside the U.S. banking system, positioning it to compete directly with USDC for institutional adoption.
Tether has entered the U.S. stablecoin market with the launch of USAT, a digital dollar built to operate under federal rules. Issued by a federally chartered bank, the token brings stablecoin activity directly into the U.S. banking system. With USAT, Tether aims to serve U.S. users and institutions seeking a regulated digital dollar issued by a federally chartered bank.
USAT Designed to Fit U.S. Payment and Banking Systems
Tether has brought USAT to the U.S. market as a federally regulated digital dollar. Issuance runs through Anchorage Digital Bank, N.A., placing the stablecoin inside the federal banking system. Through that structure, USAT operates under the new federal stablecoin framework created by the GENIUS Act.
Former White House Crypto Council Executive Director Bo Hines serves as CEO of Tether USAT. With the formal launch complete, USAT is now available to U.S. users seeking a compliant, dollar-backed digital asset.
USAT was first announced late last year, along with details about its structure and leadership. While Tether’s USDT operates across global markets, USAT is designed for use within the United States.
Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America 🇺🇲🚀
Read more: https://t.co/rIMQTQ7ipX
— Tether (@tether) January 27, 2026
The stablecoin runs through a federally chartered bank and works as a regulated digital dollar designed to fit domestic payment systems. As a result, the token is subject to direct regulatory oversight, a structure that many domestic institutions have long requested.
“With the launch of USAT, we see a digital dollar that is designed to meet federal regulatory expectations. Our focus is stability, transparency, and responsible governance, ensuring that the United States continues to lead in dollar innovation.”
Bo Hines, CEO of Tether USAT, said.
USAT’s launch was met with immediate support from major exchanges and payment providers. Trading and payments are live on MoonPay, Kraken, OKX, Bybit, and Crypto.com, giving users and institutions direct access from day one.
USAT Launch Adds to Tether’s Growing Role in Dollar-Based Markets
Notably, stablecoins track the value of assets such as national currencies or gold. As such, crypto markets rely on them for payments, trading, and cross-border transfers. Tether’s USDT leads the sector by size, while Circle’s USDC ranks second.
For years, USDC has served as the preferred option for American institutions. USAT now enters that same space, signaling direct competition. Tether is now moving directly into a market that Circle has dominated to expand adoption. The company’s leadership has set an ambitious target of a $1 trillion market capitalization for USAT within 5 years.
Paolo Ardoino, chief executive of Tether, said the stablecoin offers institutions another choice for using digital dollars in the United States. He pointed to USDT’s decade-long track record as proof that dollar-backed tokens can work at scale. According to Ardoino, USAT extends that idea into a structure designed specifically for U.S. rules and expectations.
Outside digital tokens, Tether has built a sizable stake in U.S. government bonds. Current data places the group as the world’s seventeenth-largest holder of Treasuries. Holdings exceed those of several major sovereign nations, including Germany, South Korea, and Australia.