the company that issues the largest stablecoin in the world has just confirmed its intention to issue a new stablecoin specifically focused on the United States, a development that could arrive as soon as 2025.
Tether's CEO, Paolo Ardoino, reiterated the company's previously announced plans to create a stablecoin focused on the United States.
Ardoino outlined a tentative timeline for this initiative, suggesting that the U.S. #stablecoin could launch by the end of this year or early 2026, in an optimistic estimation of timing, although deployment will depend on progress in related legislation in the United States.
The company's plans, whose flagship product $usdt currently dominates the global stablecoin market, come amid discussions in the United States Congress about stablecoin regulation.
U.S. lawmakers, motivated by the Trump administration, are currently reviewing two bills related to stablecoins: the “STABLE” Act from the House of Representatives and the “GENIUS” Act from the Senate.
While both are similar in their proposals to establish guardrails for the issuance of such tokens, they differ in how foreign issuers like Tether will be regulated. In particular, the Senate's effort would prohibit the issuance of foreign stablecoins in the United States, although ultimately, both pose challenges overall for foreign issuers.
Ardoino hinted last month that the company is not afraid of USDT being excluded from the U.S. market due to new rules, and that it could address this with a new product designed in line with regulations.
It could emerge as a competitor to CashApp and PayPal.
Ardoino explained to CNBC that Tether's flagship token, USDT, is designed to serve users in emerging markets with limited access to U.S. dollars, and that the new offering would be a different product.
“In the United States, a payment product needs to be created, something that could be used by institutions. Something that can be used as a competitor to CashApp and PayPal,” he said in the interview. “That is what we are aiming for.”
Stablecoins are a type of digital token linked to the value of physical assets such as fiat currencies, often U.S. dollars. They differ from cryptocurrencies like Bitcoin by avoiding volatility.
USDT is the largest with a market capitalization of nearly USD $150 billion, compared to the total stablecoin market value of USD $241 billion, according to data from CoinMarketCap.
Meanwhile, the report highlights Tether's recent efforts to reach the ears of Washington amid regulatory debates. This offensive has included private meetings with lawmakers, a lunch on Capitol Hill with Senator Bill Hagerty, and even parties with people from the cryptocurrency industry, the publication details, citing a report from New York Times.
Tether's plans to deepen its stablecoin business in the United States reflect the change in regulatory focus under the Trump administration, which, since taking office in January, has embraced the cryptocurrency sector. Trump created a strategic reserve of Bitcoin and has said he wants to sign stablecoin legislation before August.