Tether has launched a U.S.-focused, federally regulated stablecoin as Washington moves to establish formal oversight of dollar-backed digital tokens under new legislation.
The issuer of the world’s largest stablecoin said it has begun offering USA₮, a dollar-backed token designed to operate within the regulatory framework created by the GENIUS Act. The token is issued by Anchorage Digital Bank, a federally chartered crypto bank, making it one of the first stablecoins structured under a national banking license.
The launch marks Tether’s first major effort to create a stablecoin specifically for the U.S. market, separate from its flagship USD₮ token, which dominates global crypto trading and payments. While USD₮ continues to operate internationally, the company said USA₮ is intended to meet U.S. regulatory requirements for reserve management, compliance, and institutional oversight.
Stablecoins have become a core part of digital asset markets, with US$315 billion worth of stablecoin in circulation and with US$108 billion in daily trading volumes, rivaling major payment networks. U.S. lawmakers have intensified efforts to regulate the sector following a series of market disruptions and concerns about reserve transparency and consumer protection.
Under the GENIUS Act framework, stablecoin issuers must operate through regulated entities, maintain high-quality reserves, and submit to ongoing supervision.
By partnering with Anchorage Digital Bank, Tether has placed USA₮ within the federal banking system, rather than operating through offshore entities as it has historically done with USD₮.
Cantor Fitzgerald will act as reserve custodian and primary dealer for USA₮, providing custody and oversight of the assets backing the token. Tether said the arrangement is intended to improve visibility into reserves and align the product with institutional risk standards.
The company previously announced the development of USA₮ in late 2025 and appointed former White House Crypto Council executive director Bo Hines as chief executive of the U.S. business. Hines now leads the entity overseeing the domestic stablecoin operation.
Tether said USA₮ will initially be available through several major crypto platforms, including Bybit, Crypto.com, Kraken, OKX, and Moonpay, with additional U.S.-regulated exchanges and banking partners expected to follow.
The move comes as Tether seeks to strengthen its position amid rising competition from regulated stablecoin issuers such as Circle, PayPal, and several traditional financial institutions exploring tokenized deposits and digital dollars.
Despite its market dominance, Tether has faced long-running scrutiny over reserve disclosures and regulatory compliance. In recent years, the company has increased its exposure to U.S. Treasuries and published more frequent reserve attestations. Tether has said it now ranks among the world’s largest holders of U.S. government debt through its reserve portfolio.
By introducing a domestically regulated product, Tether appears to be positioning itself to participate more directly in the U.S. financial system as stablecoins become more integrated into payments, settlement, and corporate treasury operations.
The launch reflects a broader shift toward bank-issued and regulator-approved digital dollars, as policymakers seek to balance innovation with financial stability.
The rollout of USA₮ follows growing interest from banks, asset managers, and payment firms in using blockchain-based dollars for cross-border transfers, liquidity management, and on-chain finance. Federal regulators have signaled that compliant stablecoins could play a role in modernizing payment infrastructure, provided issuers meet strict governance and transparency standards.
Tether said USD₮ will continue to serve international markets while the new token focuses on domestic use cases, marking a dual-track strategy that separates its U.S. and global operations.
Read Also: Falcon Finance Links USDf Stablecoin to Traditional Banking
Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.
Image Credits: Tether, Shutterstock, Canva, Wiki Commons
