Tether, the company behind the world’s largest stablecoin USDT ($161 billion market cap), plans to launch a separate US-compliant digital dollar by late 2025.
CEO Paolo Ardoino confirmed this dual-token strategy as the GENIUS Act creates America’s first comprehensive stablecoin framework.
This move puts Tether in direct competition with Circle‘s USDC for the US market while maintaining USDT for international users.
Key Takeaways
Two-token strategy: Tether will create a new US-specific stablecoin while keeping USDT for international markets
Timeline: Launch expected by end of 2025 or early 2026, pending final GENIUS Act implementation
Market impact: Tether’s $20B annual profits vs Circle’s $156M creates uneven playing field
Regulatory compliance: New token will require 1:1 US Treasury backing under GENIUS Act rules
Global implications: 99.7% of stablecoins are USD-pegged, strengthening dollar dominance through private issuers
Tether’s Two-Product Strategy Explained
The New US-Specific Stablecoin
“We need to have two products with two different value propositions,” Ardoino explained to CNBC. The US token will function as “basically a settlement currency” designed for American institutions and payment providers.
This new stablecoin will compete with services like PayPal‘s CashApp and target institutional clients who need regulatory clarity. Built specifically for GENIUS Act compliance, it will maintain 1:1 backing with US Treasuries and submit to federal oversight.
USDT Remains International
USDT will continue serving its 350 million global users, particularly in emerging markets where it functions as a dollar substitute. “Our main stablecoin is perfected for emerging markets,” Ardoino stated, highlighting why Tether needs different products for different markets.
This separation allows Tether to meet strict US requirements without disrupting service for international users who rely on USDT for cross-border payments, savings, and protection against local currency devaluation.
Timeline and Launch Details
Launch Window
“Realistically, it depends on the timeline of the final legislation on stablecoins, but we are looking at [launching the product] by the end of this year or early next year at the fastest,” Ardoino told CNBC.
The launch depends on several factors:
GENIUS Act final implementation (expected Q3 2025)
120-day regulatory approval process
Technical infrastructure deployment
Market liquidity provision
Regulatory Milestones
The Senate passed the GENIUS Act 68-30, establishing a clear path for stablecoin issuers. The Office of the Comptroller of the Currency (OCC) will review applications within 120 days, meaning Tether could receive approval by late 2025 if it applies promptly.
Tether has been preparing through Ardoino’s first US tour, including meetings with Senator Bill Hagerty and participation in the Cantor Fitzgerald Global Technology Conference.
The GENIUS Act Framework
What the Law Enables
The GENIUS Act creates three types of permitted stablecoin issuers:
Federal qualified nonbank issuers (OCC supervised)
Bank subsidiaries (regulated by banking agencies)
State-qualified issuers (state regulation with federal oversight)
All issuers must back tokens 1:1 with US Treasuries. This requirement turns stablecoin companies into major Treasury buyers—Tether already holds $120 billion in US government debt, ranking among the top 20 global holders.
Tether’s Compliance Position
Tether claims “the highest level of compliance” regarding law enforcement cooperation. The company has:
Onboarded FBI and Secret Service to its platform
Frozen $835 million in criminal assets
Worked with 140 law enforcement offices across 45 jurisdictions
The company’s existing Treasury holdings and compliance infrastructure position it well for GENIUS Act approval.
Dollar Dominance Through Private Markets
With 99.7% of stablecoins USD-pegged, the GENIUS Act turns private profit motives into US monetary policy tools. Stablecoin issuers earn Treasury yields while spreading dollar liquidity globally—the more they grow, the more Treasuries they buy, strengthening the dollar’s international position.
Market Competition and Stakes
Tether vs Circle Battle
The financial gap between competitors is striking:
Tether: $20 billion profits (2024), 70% market share
Circle: $156 million profits, 30% market share
Circle’s advantages include existing US compliance, Coinbase integration, and established Washington relationships. Tether counters with massive financial resources and global user base.
New Market Entrants
Major players entering the stablecoin space:
Trump Family: Planning their own dollar-backed stablecoin
JPMorgan Chase: Launched JPMD token on Base blockchain
Tech Giants: Amazon and Walmart exploring payment tokens
Bank of America CEO confirmed active industry discussions about stablecoin issuance.
Market Size and Growth
Current stablecoin news shows explosive growth:
$28 trillion annual transaction volume (exceeding Visa + Mastercard combined)
$232 billion total market cap (May 2025)
Citi projects multi-trillion dollar market by 2030
Tether’s Strategic Position
Financial Resources
Tether’s finances demonstrate its market power:
$20 billion profits (2024)
$5.6 billion excess reserves
$11.9 billion net equity
150 employees ($86 million profit per employee)
First quarter 2025 showed continued strength with $1.3 billion quarterly profit.
Key Relationships
Cantor Fitzgerald manages Tether’s Treasury portfolio. Former Cantor CEO Howard Lutnick now serves as Commerce Secretary, though Ardoino states they maintain “proper walls given the potential conflict of interest.”
Ardoino’s Washington activities included lawmakers meetings, industry events, and building regulatory relationships crucial for US market entry.
Beyond Stablecoins
Tether’s expansion includes:
AI platform launching Q1 2025
$500 million bitcoin mining investment
$775 million Rumble stake
African energy infrastructure projects
Challenges and Regulatory History
Past Settlements
Tether’s regulatory journey includes:
“We’ve been through hell,” Ardoino acknowledged, but maintains the company has emerged stronger.
Current Criticisms
Senator Elizabeth Warren called the GENIUS Act a “weak bill,” citing consumer protection concerns. Critics also point to:
Lack of full Big Four audit (uses BDO attestations)
Trump family conflict of interest questions
Historical transparency issues
Industry and User Impact
US Market Changes
American users will see:
Fully compliant stablecoin options
GENIUS Act bankruptcy protections
Easier bank integration
Possible yield sharing as competition increases
USDT availability remains uncertain pending final regulations.
International Effects
Global users can expect:
Continued USDT access
Improved liquidity from US market growth
Better fiat on/off ramps
Enhanced stability from larger reserves
Crypto Industry Response
Market participants are preparing:
Exchanges adjusting for liquidity shifts
DeFi protocols planning integrations
Competitors accelerating US plans
Global regulators studying the US model
Conclusion
Tether’s US stablecoin launch represents a defining moment for digital dollars. The company’s two-token approach, compliant US token plus international USDT—shows sophisticated market understanding. With $20 billion in annual profits backing its expansion, Tether poses a serious challenge to Circle’s US dominance.
The GENIUS Act transforms stablecoins from regulatory uncertainty to strategic US assets. As private companies compete for market share, they strengthen dollar dominance by purchasing Treasuries, a win-win for issuers and US monetary policy.
Watch for Tether’s regulatory application in coming months as the stablecoin wars enter their most competitive phase yet.
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FAQs:
1. When will Tether launch its US stablecoin?
Tether CEO Paolo Ardoino stated the target is “by the end of this year or early next year at the fastest,” meaning late 2025 or early 2026, depending on GENIUS Act implementation timing.
2. How will the new US stablecoin differ from USDT?
The US stablecoin will comply with GENIUS Act requirements including 1:1 US Treasury backing and federal oversight. USDT will continue serving international markets with its current structure and flexibility.
3. What is the GENIUS Act?
The Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 creates America’s first comprehensive stablecoin regulatory framework, requiring Treasury backing, federal supervision, and law enforcement cooperation.
4. Will USDT still be available in the US?
This remains undetermined pending final regulatory implementation. USDT may face restrictions for direct issuance to US users but could remain tradeable on secondary markets.
5. How does this affect Circle and USDC?
Tether’s entry creates direct competition for Circle’s USDC in the compliant US market. With Tether’s $20 billion profits versus Circle’s $156 million, the competitive dynamics will shift significantly.