While Tether dominates the global stablecoin market with its $150 billion USDT token, the crypto giant isn’t satisfied. The company has its sights set on launching a separate U.S.-focused stablecoin by late 2025 or early 2026, pending regulatory clarity. Because apparently one mega-successful stablecoin just isn’t enough.
The timing is interesting, to say the least. Tether’s making this bold move while the GENIUS Act – legislation that would require stablecoins to be fully backed by cash and “safe assets” – hangs in regulatory limbo. CEO Paolo Ardoino claims they’re “getting comfortable” with the requirements. Sure they are. Based in El Salvador headquarters, Tether continues to navigate complex regulatory landscapes.
What’s truly eye-popping is Tether’s growing Treasury holdings. They’ve surpassed Germany with over $120 billion in U.S. Treasury bills, making them the 19th largest holder among all countries. Not bad for a company that doesn’t even directly serve U.S. customers yet. Like other fiat-backed stablecoins, Tether maintains its value through these reserve assets.
Tether’s $120B Treasury holdings outpace Germany, placing them 19th globally – all while staying outside the U.S. market.
The strategy makes sense. Tether’s existing USDT focuses on underbanked populations in developing economies, while this new coin aims to compete with services like PayPal’s CashApp. It’s a two-pronged attack on different markets, with Cantor Fitzgerald managing their massive Treasury portfolio.
Speaking of connections, it’s worth noting that former Cantor Fitzgerald CEO Howard Lutnick now serves as Secretary of Commerce in the Trump administration. Meanwhile, Ardoino’s been making the rounds across America, speaking at conferences and building institutional relationships.
The timing might actually be perfect. Citi predicts the stablecoin sector could become a multi-trillion-dollar market by decade’s end. Circle’s USDC, with its $62 billion market cap, is also expanding services. Competition‘s heating up.
But Tether’s got momentum. They were the seventh-largest buyer of U.S. Treasurys across all countries in 2024. That’s serious financial muscle.
Whether the GENIUS Act passes or not, Tether’s making it clear: they’re coming for the U.S. market. Ready or not.
