Tether Launches US-Regulated USAT to Challenge Circle
Tether has launched USAT, a new U.S.-regulated stablecoin issued through Anchorage Digital Bank, marking a significant strategic shift to compete directly in the American market. The move positions Tether against Circle's USDC and a growing field of institutional players like Fidelity, JPMorgan Chase, and PayPal. For years, Tether and its CEO Paolo Ardoino operated from offshore, avoiding U.S. jurisdiction while its primary stablecoin, USDT, grew to a market capitalization of $187 billion with 536 million users. This launch signals a deliberate pivot to engage with U.S. regulators and establish a compliant foothold, moving from the fringes to the financial mainstream.
Ardoino Cites $30B in Reserves and Law Enforcement Ties
In a broad media campaign, Paolo Ardoino is repositioning Tether as a stable and transparent partner for the global financial system. He points to the company's resilience during the Terra/Luna collapse in spring 2022, when it processed $20 billion in redemptions—25% of its reserves—in 20 days without issue. Ardoino emphasizes that Tether now holds $30 billion in excess reserves and works with nearly 300 law enforcement agencies globally, including the FBI and the Secret Service. This collaboration has enabled the freezing of $3.5 billion in illicit funds, including $225 million from a single "pig-butchering scam" identified in 2023. When S&P Global Ratings recently called USDT's stability "weak," Ardoino was dismissive.
If that is the same S&P that completely missed the subprimes, I’m proud they’re considering us weak.
— Paolo Ardoino, CEO, Tether Holdings SA.
Beyond Stablecoins: Tether Amasses $24B in Gold and Bets on AI
Tether's ambitions extend far beyond digital dollars, transforming the company into an entity that resembles a sovereign wealth fund. The company has aggressively accumulated physical gold, now holding approximately 140 tons worth around $24 billion, making it one of the world's largest private gold holders. This strategy complements its Tether Gold (XAUT) token, which has a market value of $2.6 billion. Furthermore, Tether is diversifying into technology and infrastructure, committing over $1 billion to AI firm Neura and $775 million to the social media platform Rumble. Ardoino frames these investments—spanning AI, data centers, and even agriculture—as a cohesive strategy to build a resilient, multi-generational company that serves its global user base by providing stability across different asset classes and technologies.
