Tether today announced the launch of USA₮, a dollar-backed stablecoin designed to operate under the U.S. federal stablecoin regime created by the GENIUS Act, marking the company’s most direct push yet into the American market after years of running its flagship USDT stablecoin largely offshore.
Unlike USDT, USA₮ is issued by Anchorage Digital Bank, N.A., which Tether describes as a federally regulated crypto bank operating under the Office of the Comptroller of the Currency. Tether stressed that its own operating entity is not the issuer of the token.
The rollout lands as Washington’s new stablecoin rulebook reshapes competition for “digital dollar” products used in crypto trading, cross-border transfers and treasury management. The GENIUS Act—signed into law in July 2025—set federal standards for payment stablecoins, including reserve and disclosure requirements and a framework for permitted issuers.
A New “Onshore” Token for a Regulated Era
In the release announcing the product, Tether positioned USA₮ as purpose-built for U.S. institutions and domestic payment infrastructure, while casting USDT as continuing to serve global markets as it progresses toward compliance with the new law.
“USA₮ offers institutions an additional option: a dollar-backed token made in America,” Tether CEO Paolo Ardoino noted.
Cantor Fitzgerald will act as reserve custodian and “preferred primary dealer,” the company added, a setup intended to provide greater visibility into reserve management from launch.
Tether also underscored a legal point commonly highlighted by regulated issuers: USA₮ is not legal tender and is not backed by, approved by, or insured by the US government, the statement read.
Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America 🇺🇲🚀
Read more: https://t.co/rIMQTQ7ipX
— Tether (@tether) January 27, 2026
“With the launch of USA₮, we see a digital dollar that is designed to meet federal regulatory expectations,” said Bo Hines, CEO of Tether USA₮. “Our focus is stability, transparency, and responsible governance, ensuring that the United States continues to lead in dollar innovation.”
In the first phase, USA₮ will be available via Bybit, Crypto.com, Kraken, OKX and MoonPay, with additional US-regulated exchanges and banking partners being lined up to broaden distribution.
GENIUS Act Raises the Bar for Stablecoin Issuers
The GENIUS Act created the first federal regulatory system for payment stablecoins, including requirements for 100% reserve backing with liquid assets, monthly public reserve composition disclosures, and restrictions on marketing claims suggesting government backing or insurance.
As the bill advanced in 2025, proponents contended it would bring clarity to an industry that had operated under a patchwork of state rules.
“It is a major milestone,” Andrew Olmem, a former deputy director of the National Economic Council and managing partner at Mayer Brown, said at the time.
The US Treasury Department began the implementation process in late 2025, including soliciting public input on how the law should be put into practice.
Competing for Institutional Flows in a Crowded “Digital Dollar” Market
Stablecoins have become core plumbing for digital-asset markets, and their scale increasingly overlaps with traditional finance. USDT remains the largest dollar-pegged token, with market capitalization around $186 billion, while Circle’s USDC is roughly $75 billion, according to recent market data.
Transaction volumes have also surged: total stablecoin transactions rose to $33 trillion in 2025, led by USDC and USDT, Bloomberg reported, citing data from Artemis Analytics.
Tether has argued that the sector’s growth reinforces the dollar’s global role, while pointing to its own footprint in U.S. government debt markets. The firm is reportedly holding about $135 billion of U.S. Treasuries, a sum that would rank it as the 17th-largest holder globally if compared alongside sovereign and other major holders.
That macro narrative has drawn increased attention as stablecoin reserve managers become more visible buyers of short-dated U.S. government debt.
Whether USA₮ gains meaningful traction will hinge on how quickly regulated on-ramps integrate it, how institutions price and operationalize bank-issued stablecoins versus existing products, and how aggressively regulators enforce the GENIUS Act’s new standards across the market.