The world's largest stablecoin issuer, Tether, has announced the launch of a new dollar stablecoin called "USA₮", emphasizing enhanced compliance, targeting the U.S. market, while maintaining USDT's $170 billion market dominance. Meanwhile, Circle, the issuer of USDC which has long positioned itself as a U.S.-regulated entity, saw its stock price drop over 6% following the announcement.

Tether Launches U.S. Stablecoin USA₮

On September 12, 2025, Tether announced the launch of USA₮, a dollar stablecoin designed specifically for the U.S. market, expected to go live before the end of the year. It will fully comply with the U.S. GENIUS Act, issued by Anchorage Digital Bank, with Cantor Fitzgerald handling reserve custody, and former White House crypto advisor Bo Hines serving as CEO of Tether's U.S. operations. USA₮ aims to provide higher transparency, including daily reserve reports and OFAC screening, complementing the global USDT (which retains offshore flexibility). This is Tether's strategic move to address U.S. regulatory pressures, aiming to enter the institutional and enterprise markets while maintaining USDT's $170 billion market dominance.

USA₮ will be issued by Anchorage Digital Bank, which holds a national trust bank charter from the U.S. Office of the Comptroller of the Currency. Tether CEO Paolo Ardoino stated that Anchorage Digital Bank will become one of the shareholders in the new joint venture.

Tether Strengthens Compliance, Targets U.S. Market

Merris Badcock, Vice President of The Digital Chamber, a cryptocurrency trade association, said:

“This is a huge moment for Tether who has overcome years of misinformation campaigns to get here. Tether is making a strategic move that strengthens its credibility and momentum in America.”

Over the years, Tether has been trying to shake off what many perceive as a checkered past. Tether has previously faced strict scrutiny from the U.S., and the company agreed to release quarterly reserve reports as part of a 2021 settlement with the New York Attorney General's Office, which accused Tether and its sister company Bitfinex of commingling customer and corporate funds to cover up $850 million in missing funds.

In the past, criticisms of USDT's bad actors and the company's attitude toward reserve transparency have impacted Tether's reputation. The company has faced scrutiny from regulators and law enforcement, including a U.S. Department of Justice investigation into whether its tokens are used for illicit transactions. However, USDT has grown to become the most widely traded stablecoin globally.

USA₮ Directly Impacts USDC, Circle Stock Price Falls 6%

Given Tether's prominence, scale, and the substantial financial resources accumulated from years of profitability, its entry into the U.S. market is expected to reshape the competitive landscape. The company will have billions of dollars in funding to support the launch of USA₮ and attract institutional partners. After all, stablecoins are not appreciating cryptocurrencies like Bitcoin; their value depends on the extent of their widespread adoption.

According to CoinMarketCap data, USDT currently has a total circulating supply of $170.3 billion, accounting for 57% of the overall stablecoin market value, far exceeding USDC's $73.2 billion.

Circle has long been committed to positioning USDC as a regulated alternative to USDT. Tether's launch of USA₮ poses a direct challenge to USDC. Mizuho Securities analyst Dan Dolev believes that the launch of USA₮ is a negative factor for Circle, with Circle's stock price falling over 6% last Friday.

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