Tether Unveils New Stablecoin USAT, Appoints Ex-White House Advisor As CEO

Tether unveiled a new U.S.-focused stablecoin, USAT, on Friday and named former White House advisor Bo Hines as its CEO.

Hines, who previously led the Presidential Council of Advisors for Digital Assets, has been named CEO of Tether U.S. He joined Tether as an advisor in August following a brief tenure at the White House under the Trump administration.

The company said its new stablecoin, USAT, would be regulated under the U.S. GENIUS Act. While Tether’s flagship USD Tether (USDT) serves global markets, USAT is specifically designed for businesses and institutions operating within a U.S. regulatory framework.

On Stocktwits, retail sentiment around Tether's USDT dipped to 'bearish' from 'neutral' territory over the past day.

The move comes as Tether continues to face scrutiny over USDT, the world’s largest stablecoin with a market value exceeding $100 billion. Tether initially claimed that each USDT was “always backed 1-to-1 by traditional currency,” but later amended that language to include other assets and loans. In 2019, the company disclosed that only about 74% of USDT was backed by cash or equivalents, with the remainder comprising commercial paper, secured loans, and other receivables.

In 2021, the Commodity Futures Trading Commission (CFTC) fined Tether $41.6 million for misrepresenting its reserves. Since then, Tether has said it has shifted almost entirely into U.S. Treasuries, publishing quarterly attestations that show assets exceeding liabilities. However, unlike rival Circle’s (CRCL) USDC (USDC), USDT has never undergone a full independent audit. Earlier this year, Tether said it was working with a Big Four accounting firm to complete one, but has yet to disclose the firm’s name or timeline for completion.

USAT is being pitched as an answer to those concerns, offering a domestically regulated, dollar-backed stablecoin under direct U.S. oversight. “The simultaneous introduction of both the token and CEO reflects Tether’s commitment to delivering a U.S.-regulated dollar-backed stablecoin backed by transparent reserves, strong governance, and American leadership from day one,” the company said.

Anchorage Digital, the first federally regulated crypto bank, will issue USAT in compliance with the GENIUS Act, while Cantor Fitzgerald will act as reserve custodian and preferred primary dealer. Tether Group will provide global distribution infrastructure for the new product.

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