Tether Expands Into the U.S. With a New Domestic Stablecoin

Tether, the world's largest stablecoin issuer, is planning to launch a U.S.-based dollar-pegged stablecoin

Tether, the world’s largest stablecoin issuer, is planning to launch a U.S.-based dollar-pegged stablecoin as soon as this year, CEO Paolo Ardoino told CNBC.

The move comes as Ardoino has stepped up his lobbying efforts in Washington, D.C., to influence crypto regulation as pro-crypto sentiment grows under former President Donald Trump’s allies, according to CNBC reporting.

Speaking at the Token2049 conference in Dubai, Ardoino said the upcoming domestic stablecoin would be an addition to Tether’s existing international products, such as Tether (USDT).

The launch could happen by year-end or early 2025, depending on the pending legislation, Ardoino added.

Tether’s dance in Washington

Ardoino has been meeting with several figures in Washington, including a Capitol Hill lunch with Senator Bill Hagerty and private meetings with unnamed lawmakers, the report noted.

His efforts appear to align with the GOP’s GENIUS Act, which could ease U.S. operations for foreign stablecoin issuers that cooperate with law enforcement.

Tether, which is headquartered in El Salvador, has had a complicated relationship with regulators. In 2021, it paid $18.5 million to settle claims it misled the New York attorney general about its reserves.

Today, the company claims it holds nearly $120 billion in U.S. Treasuries, which are being overseen by Cantor Fitzgerald.

Its Q1 audit showed it had $5.6 billion in excess reserves, down from $7 billion at year-end.

The firm’s U.S. expansion comes as Eric and Donald Trump Jr. plan to launch their own dollar-backed stablecoin through a venture linked to their father’s political brand, potentially setting the stage for a domestic stablecoin arms race.