Tether is launching USA₮, a U.S.-regulated stablecoin designed to comply with the GENIUS Act, the stablecoin issuer announced in a press release on Friday.
What Happened: The world’s largest stablecoin issuer unveiled USA₮ alongside the appointment of Bo Hines, former executive director of the White House Crypto Council, as CEO of the new U.S. entity.
The regulated stablecoin will leverage Hadron by Tether technology with Anchorage Digital serving as the GENIUS Act-compliant issuer and Cantor Fitzgerald as reserve custodian.
“For over a decade, Tether – as the creator of the stablecoin industry – has issued USD₮ (CRYPTO: USDT), the backbone of the digital economy,” said Paolo Ardoino, Tether CEO.
The company’s flagship USDT token maintains a $169 billion market capitalization with nearly 500 million users globally, particularly serving “the underbanked, unbanked, and underserved” in emerging markets.
USA₮ represents Tether’s strategic pivot toward U.S. regulatory compliance while maintaining its global dominance.
“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,” Hines said.
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Why It Matters: Parallel to the stablecoin launch, Tether has continued to expand its gold investment strategy across the precious metals supply chain.
Tether’s gold ambitions extend beyond its existing $8.7 billion bullion holdings in Zurich vaults.
The company purchased a $105 million stake in Canadian gold royalty firm Elemental Altus Royalties Corp (OTCQX:ELEMF) earlier this year, followed by an additional $100 million investment during Elemental’s merger with EMX Royalty Corp (AMEX:EMX).
Juan Sartori, who oversees business initiatives at Tether, described these moves as part of expanding the group’s “gold exposure.” The strategy aligns with Ardoino’s previous characterization of gold as “natural Bitcoin,” emphasizing its role as a store of value complementing digital assets.
Industry reaction to Tether’s gold strategy remains mixed. Mining sector executives expressed surprise at the company’s ambitions, with one noting “They like gold. I don’t think they have a strategy.” At the same time, another described Tether as “the weirdest company I have ever dealt with.”
Despite skepticism, Tether’s financial position enables aggressive expansion.
The company generated $5.7 billion in profit during the first half of 2024, mainly through interest from U.S. Treasuries backing USDT.
This profitability positions Tether among the largest U.S. Treasury holders globally, ranked 18th ahead of Germany, South Korea and Australia.
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