Tether to Launch a US-Based Stablecoin by Late 2024 or Early 2025

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

The new coin will aim to align with potential US crypto regulations and will differ from Tether’s international offerings, which are largely advertised as a fiat-backed asset.

Speaking at the Chaincode Global’s DeFi & Digital Asset Summit in New York, Ardoino said the launch will depend on the timeline of US legislation.

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

The company’s legal chief, Charles Chauncy, has also spoken about the company’s role in law enforcement partnerships to combat crypto crime.

This story was originally featured on iTrust Chaincoins.

The company’s move to launch a US stablecoin comes as it seeks to expand its footprint in the world’s largest economy.

Tether has faced scrutiny from US regulators in recent years.

In 2021, the company settled with the New York Attorney General for $18.5 million after being accused of operating as a fractional reserve and misusing customer funds.

However, Tether has since moved to rebuild its reputation by publishing attestation reports and claiming to hold approximately $120 billion in US Treasuries.

The company has also been engaging with lawmakers and crypto stakeholders in Washington.

This includes meeting with members of Congress and attending House Appropriations Committee hearings.

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

The velocity of major stablecoins is now nearly equivalent, suggesting robust and distributed trading activity across different platforms rather than a concentration on a single token. This indicates a healthy and dynamic market with diverse participants engaging in lively trading on various exchanges and protocols.

The pattern of increasing institutionalization is evident across the stablecoin sector, with 86% of the $232 billion market concentrated in Tether and USDC, both of which have developed significant compliance operations and banking relationships. In contrast, smaller stablecoins appear to be catering to specific niches within the DeFi ecosystem.

This evolution suggests that stablecoins are becoming less of an alternative financial system and more of an extension of the existing one, potentially bringing both stability and new forms of systemic risk to the broader crypto ecosystem. As such, their integration into the US financial landscape will be a subject of keen interest and scrutiny in the years to come.