Tether has introduced USA₮, a new dollar-backed stablecoin created specifically for the United States market, as the company adapts to comply with the country’s recently enacted federal stablecoin regulations. The digital token, announced on January 27, represents Tether’s strategic response to the GENIUS Act, which established the first comprehensive nationwide framework for stablecoin regulation in America.
According to Tether, USA₮ is issued by Anchorage Digital Bank, N.A., a federally chartered institution operating under US banking regulations. This marks the first time Tether has launched a stablecoin designed to function entirely within America’s regulated financial system, distinguishing it from the company’s flagship USDT token.
Compliance with Federal Stablecoin Law
The new stablecoin is structured to meet the GENIUS Act’s stringent requirements for payment stablecoins operating in the United States. These requirements include issuance through a licensed banking institution, full reserve backing, and continuous regulatory oversight by federal authorities.
Cantor Fitzgerald will serve as the reserve custodian and preferred primary dealer for USA₮, providing transparency over the token’s backing from its initial launch. The arrangement is intended to offer institutional users confidence in the stablecoin’s regulatory compliance and reserve management.
Initial Platform Availability
During its initial rollout phase, USA₮ will be accessible through several major cryptocurrency platforms. According to the announcement, participating exchanges include Kraken, Crypto.com, MoonPay, OKX, and Bybit, giving the stablecoin immediate distribution channels to reach institutional and retail users.
The company stated that the stablecoin is designed specifically for US institutions and platforms requiring a federally regulated digital dollar option. This positioning targets financial entities that previously faced limitations in using offshore-issued stablecoins due to compliance concerns.
Regulatory Pressure Under GENIUS Act
The launch follows significant regulatory pressure created by the GENIUS Act, which introduced mandatory standards for stablecoins marketed to American users. Under this legislation, only stablecoins issued by federally or state-qualified entities may be legally distributed to US persons.
Additionally, the law restricts offshore-issued tokens that fail to meet these standards from being offered through US-regulated exchanges, banks, and payment service providers. This framework effectively limited the operational scope of USDT, Tether’s existing stablecoin that dominates global markets but was not designed for US regulatory compliance.
Competition with Circle’s USDC
The introduction of USA₮ places Tether in direct competition with Circle’s USDC, which has benefited from early regulatory alignment with US financial institutions. USDC has gained significant market share among American institutional users due to its transparent reserve practices and compliance-focused structure.
However, by launching a bank-issued stablecoin alongside its existing USDT token, Tether can now offer US institutions a compliant alternative while maintaining its dominant position in international markets. This dual-token strategy allows the company to defend its market leadership both domestically and globally.
Meanwhile, the approach enables Tether to serve two distinct markets: regulated US entities requiring GENIUS Act compliance through USA₮, and international users who continue utilizing USDT for cross-border transactions and trading activities.
Authorities have not announced specific timelines for additional regulatory guidance regarding stablecoin operations, though the GENIUS Act’s implementation continues to reshape the competitive landscape among digital dollar issuers. The success of USA₮ will likely depend on adoption rates among US financial institutions and cryptocurrency platforms in coming months.
