What Is USAT?
USA₮ (USAT) is Tether’s new US-regulated, dollar-backed stablecoin designed specifically for the American market. Unlike Tether’s flagship USDT, which operates offshore, USAT is built from the ground up to comply with the GENIUS Act—the landmark federal legislation governing stablecoin issuance in the United States.
The stablecoin will be entirely managed and operated from within the US, with headquarters in Charlotte, North Carolina.
Who Are the Key Partners?
Anchorage Digital Bank, N.A.
The first federally chartered crypto bank in the United States serves as the issuer for USAT, providing the regulatory framework and banking infrastructure.
Cantor Fitzgerald
One of Wall Street’s major financial institutions serves as designated custodian and preferred primary dealer for USAT reserves, bringing traditional finance credibility to the partnership.
Hadron by Tether
Tether’s real-world-assets tokenization platform provides the technology infrastructure for USAT issuance and management.
Who Is Leading USAT?
Bo Hines has been named CEO-Designate of Tether USA₮. Hines brings experience in crypto policy, legal frameworks, and regulatory compliance from his prior role as Executive Director of a federal digital asset advisory body.
“By building USA₮ with compliance, transparency, and innovation at its core, we are ensuring that the dollar remains the foundation of trust in the digital asset space.” — Bo Hines, CEO-Designate, Tether USA₮
How Does USAT Comply With the GENIUS Act?
The GENIUS Act, signed into law on July 18, 2025, establishes federal requirements for stablecoin issuers operating in the US. USAT meets these requirements through:
- Regulated Issuer: Operating through federally regulated Anchorage Digital Bank
- Qualified Custodian: Maintaining reserves with established financial institution Cantor Fitzgerald
- Domestic Operations: Being fully managed and operated within the United States
- Transparency Standards: Meeting disclosure and compliance requirements outlined in the legislation
Notably, Tether has indicated that both USAT and the existing USDT token will comply with GENIUS Act standards—citing Article 18’s reciprocity clause, which allows stablecoin issuers from countries with comparable regulatory frameworks to distribute stablecoins within the United States.
Why Does This Matter for Financial Institutions?
The launch of USAT signals a significant shift in the stablecoin landscape. With Tether—commanding over $170 billion in market cap and approximately 60-66% of the global stablecoin market—now offering a fully US-compliant option, financial institutions have a new pathway to stablecoin integration.
Regulatory Clarity
USAT provides a clear compliance model for institutions evaluating stablecoin adoption.
Institutional-Grade Infrastructure
The partnership with Anchorage Digital and Cantor Fitzgerald establishes a familiar framework for traditional finance participants.
Competitive Dynamics
USAT positions Tether to compete directly with Circle’s USDC in the US regulated stablecoin market.
Global Standards
The GENIUS Act framework is becoming a benchmark for stablecoin regulation worldwide.
The Coinbax Perspective
As the stablecoin market matures under regulatory frameworks like the GENIUS Act, the need for trust infrastructure becomes critical. Financial institutions adopting stablecoins—whether USAT, USDC, or others—require more than just compliant tokens. They need programmable escrow, built-in reversibility, and real-time compliance capabilities to safely integrate stablecoin payments into their existing operations.
The arrival of major issuers with fully regulated US offerings accelerates the timeline for institutional adoption. The question is no longer if banks and credit unions will engage with stablecoins, but how they will do so safely and effectively.
Frequently Asked Questions
How does USAT differ from USDT?
USAT is designed specifically for US regulatory compliance under the GENIUS Act, with domestic operations, a federally chartered bank issuer, and reserves held by a US-regulated custodian. USDT operates offshore with different regulatory structure.
Will USDT remain available in the United States?
According to Tether, USDT will also comply with GENIUS Act standards through Article 18’s reciprocity clause, which allows foreign issuers with comparable regulatory frameworks to operate in the US. Both tokens may be available.
Why did Tether choose Anchorage Digital as issuer?
Anchorage Digital is the first federally chartered crypto bank in the United States, providing the regulatory foundation USAT needs for GENIUS Act compliance. The federal charter gives Anchorage authority to custody digital assets and issue compliant stablecoins.
How does USAT compete with USDC?
USAT and USDC will compete directly in the US regulated stablecoin market. Tether’s global market dominance and established distribution network may give USAT advantages, while Circle’s longer track record of US regulatory compliance benefits USDC.