Tether to launch US stablecoin aligned with regulations

Tether, the world’s largest stablecoin issuer, plans to launch a US-based stablecoin by late this year or early next year, according to CEO Paolo Ardoino.

The new coin aims to align with potential US crypto regulations and will differ from Tether’s international offerings.

Ardoino noted that the launch will depend on the timeline of US legislation.

The move follows Ardoino’s growing engagement with lawmakers and crypto stakeholders in Washington.

The company now publishes reports showing about US$120 billion in US treasuries and US$5.6 billion in excess reserves as of Q1 2025.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Tether’s remarkable regulatory rebrand after years of controversy

Tether’s move to launch a US stablecoin marks a dramatic evolution for a company once plagued by regulatory troubles.

In 2021, Tether settled with the New York Attorney General for $18.5 million after being accused of misleading the market about its reserves and operating as a fractional reserve 1.

The company has steadily rebuilt its reputation by publishing attestation reports and claiming to hold approximately $120 billion in US Treasuries, a stark contrast to its earlier years when reserve transparency was a major concern 1.

Tether’s transition from being described as a “criminal’s go-to cryptocurrency” to courting Washington lawmakers and promoting law enforcement partnerships demonstrates how digital asset companies can engineer dramatic image transformations when market conditions and political winds shift.

2️⃣ Stablecoin market power dynamics shift as sector reaches record size

Tether’s strategic moves come as the stablecoin sector has reached unprecedented scale, with total market capitalization hitting $238 billion in April 2025, highlighting the growing integration of crypto with traditional finance 2.

Despite this growth, Tether’s market dominance faces increasing competition, with USDC expanding its market share to 25% and new entrants like Ethena gaining traction, creating a more diversified ecosystem 3.

The velocity of major stablecoins is nearly equivalent now, suggesting robust and distributed trading activity across different platforms rather than concentration on a single token 3.