Tether, the largest stablecoin issuer in the world, is gearing up to launch a U.S.-based stablecoin later this year. CEO Paolo Ardoino shared in an interview with CNBC that the company is in the process of developing a new dollar-pegged stablecoin specifically for the U.S. market. This strategic move comes as Tether shifts its image from being associated with criminal activities to positioning itself as a valuable partner to American lawmakers and law enforcement agencies.
“A domestic stablecoin would be a separate entity from the international stablecoin,” Ardoino explained during the Token2049 conference in Dubai. He mentioned that the timeline for the launch is dependent on the final legislation, but they are aiming to introduce the new stablecoin by the end of the year or early next year at the latest.
However, Tether’s recent efforts to engage with lawmakers in Washington have sparked some concerns. Ardoino’s interactions, including private meetings with legislators and events with industry insiders, have drawn attention to Tether’s influence in shaping crypto-related regulations. This influence may have played a role in the development of the GOP-backed GENIUS Act, which critics argue contains loopholes that could benefit Tether and other foreign stablecoin issuers.
Despite its regulatory history and past penalties, Tether has emphasized its commitment to legal compliance and cooperation with law enforcement agencies. Ardoino highlighted the company’s collaboration with authorities and its efforts to prevent criminal activities using their platform.
In terms of asset backing, Tether has made significant strides to enhance transparency and credibility. The company settled a legal dispute with the New York attorney general in 2021 and now regularly publishes attestation reports. Tether holds billions in U.S. Treasuries, managed by Cantor Fitzgerald, and Ardoino reassured that the company is well-capitalized to withstand market fluctuations.
The latest attestation report confirmed Tether’s significant holdings in U.S. Treasuries, exceeding liabilities by a substantial margin. The partnership with Cantor Fitzgerald, led by the sons of U.S. Commerce Secretary Howard Lutnick, has also raised questions about potential conflicts of interest.
In a similar vein, Eric Trump and Donald Trump Jr. announced plans to launch a U.S. dollar-backed stablecoin through World Liberty Financial, a finance venture supported by former President Donald Trump. These developments underscore the growing interest and competition in the stablecoin market, with Tether positioning itself for further expansion and regulatory compliance in the U.S.
