Tether Activates ‘USAt’ Stablecoin: First Fed-Regulated Dollar Token Issued Under GENIUS Act

Tether Onshores the Dollar

Tether officially activated its U.S. regulated stablecoin, USA₮ (USAt), today, a move that formally splits its liquidity strategy between the offshore giant USDT and a new, federally compliant rail. According to the filing, the token is not issued by Tether directly but by Anchorage Digital Bank, N.A., making it the first stablecoin minted by a federally chartered bank under the 2025 GENIUS Act regime.

Cantor Fitzgerald will serve as the reserve custodian and primary dealer, holding the specific mix of U.S. Treasuries and cash required by the GENIUS framework. The token is immediately live on Bybit, Crypto.com, Kraken, and OKX with an initial mint of approximately $10 million.

“USAt provides institutions with an additional option: a stablecoin made in America… designed to operate within the GENIUS Act’s new federal stablecoin framework.”, Paolo Ardoino, Tether CEO

The GENIUS Pivot

The launch executes on the “two-token” strategy Tether teased late last year. While USDT ($170B market cap) continues to dominate offshore derivatives and emerging market payments, USAt is purpose-built for the U.S. banking perimeter. Under the GENIUS Act signed in July 2025, issuers like Anchorage must maintain verified 1:1 liquid reserves and submit to monthly federal audits, standards that effectively wall off U.S. institutions from non-compliant offshore tokens.

Bo Hines, the former Executive Director of the White House Crypto Council, leads the new Charlotte-based Tether USA₮ division. His appointment signals a clear intent to align USAt’s growth with the current administration’s “Crypto-in-America” mandate.

Market Impact

The market reaction was muted but distinct. USDT held its peg at $1.00 (-0.03%) on $42B volume, showing no immediate liquidity drain. However, the introduction of a federally sanctioned competitor by Tether itself forces Circle (USDC) to defend its domestic stronghold against a rival now armed with the same regulatory clearance. For market makers, the arbitrage window between the offshore USDT and the onshore USAt will likely become a key gauge of institutional risk appetite in the coming quarter.