Tether has launched a U.S.-regulated stablecoin called USA₮, issued by Anchorage Digital Bank. This marks Tether’s first fully compliant token for American users under the new GENIUS Act.
The GENIUS Act is the first nationwide law regulating stablecoins sold to U.S. customers. It requires dollar-backed tokens to be issued by federally or state-qualified entities. As a result, Tether’s flagship USDT cannot be sold in the U.S., prompting the creation of USA₮.
USA₮ went live on Monday on platforms including Bybit, Crypto.com, Kraken, OKX, and MoonPay. Cantor Fitzgerald will serve as its reserve custodian. Tether CEO Paolo Ardoino described the token as “a dollar-backed token made in America” aimed at institutional investors seeking federal oversight.
The launch puts Tether in direct competition with Circle’s USDC, which has dominated U.S. institutional adoption due to earlier regulatory alignment. USDT will continue operating internationally, with roughly $143 billion in circulation.
On the same day, Standard Chartered warned that stablecoins could drain about $100 billion from U.S. bank deposits. Stablecoin reserves are mainly held in Treasury bills rather than redeposited into banks, which reduces available funding for banks. Tether, for example, keeps only 0.02% of reserves in bank deposits, compared with 14.5% for Circle.
The bank report highlights that regional banks are most at risk, while larger institutions are better insulated. As stablecoins grow, they could pose a structural challenge to traditional banking.
Standard Chartered projects the stablecoin market could reach $2 trillion by 2028, increasing pressure on U.S. banks as regulated tokens like USA₮ gain adoption among institutions.
