Tether Challenges USDC with U.S-Compliant Stablecoin Launch

- Tether launches regulated stablecoin, USAT, for U.S. market. - Initiative focuses on GENIUS Act compliance with key financial partners. Tether has entered the U.S. regulated stablecoin market by launching USAT, a compliance-driven move that directly challenges Circle’s USDC. On September 14, 2025, *The Block* reported that the new stablecoin meets the requirements of the GENIUS Act, a new regulatory framework for U.S. stablecoins. As part of the launch, Anchorage Digital Bank will issue USAT, while the global financial services firm Cantor Fitzgerald will oversee its reserves. To lead its new U.S. division, Tether appointed former White House official Bo Hines as CEO, a strategic move positioning the company as a direct competitor to Circle’s USDC. The company plans to leverage its strong brand recognition and financial resources to gain traction in the U.S. market. Through USAT, Tether is employing a “hedge-and-expand” strategy, which allows it to embrace the regulated U.S. financial system while maintaining the global dominance of its flagship stablecoin, USDT. The introduction of USAT is poised to transform industry dynamics by intensifying competition among stablecoin issuers and bridging crypto with traditional finance. While industry observers express concern about increased regulatory oversight, Tether is highlighting its federal compliance as a key feature of the new stablecoin. Discussions about Tether’s U.S. expansion also touch on broader issues of regulation and privacy in the stablecoin sector, a development that underscores the market’s evolution. Consequently, companies are increasingly tailoring their offerings for specific applications, ranging from global retail to regulated national systems. According to CoinMarketCap, Tether USDt (USDT) was valued at $1.00 as of September 14, 20:14 UTC, reflecting a 0.005% change in its 24-hour trading volume.