Tether, the crypto heavyweight behind the USDT stablecoin, is eyeing a new venture: a U.S.-based stablecoin specifically for institutional investors. It’s a bit of a shift, really. For years, Tether’s been largely absent from the American market, focusing instead on places where a digital dollar can be, well, useful. But with Washington finally starting to sketch out some rules for stablecoins, things are changing.
- Tether is planning to launch a U.S.-based stablecoin aimed at institutional investors, marking a shift in strategy. This move comes as Washington begins to establish regulations for stablecoins.
- The new stablecoin will focus on facilitating fast settlements for banks, differing from USDT’s use in crypto trading and regions with unstable currencies. This requires a different infrastructure and level of regulatory scrutiny.
- Tether faces pressure to improve transparency, particularly regarding independent audits of its reserves. The company has hired a new CFO and aims to engage a Big Four firm for auditing, following competitor Circle’s example.
Paolo Ardoino, Tether’s CEO, told The Block that this new coin wouldn’t be aimed at everyday folks needing a safe haven from fluctuating currencies. Think less “digital dollar for Africa,” as he put it, and more “fast settlements for banks.” It’s a different beast entirely, requiring a different kind of infrastructure. And frankly, a different level of scrutiny. Have you ever tried explaining crypto to a banker? It’s…a process.
Regulation and the Road Ahead
The timing isn’t accidental. Congress is actually making progress on stablecoin legislation. Two bills – the STABLE Act in the House and the GENIUS Act in the Senate – are inching their way through the system. Even Donald Trump has weighed in, urging lawmakers to get something done by August. It’s a rare moment of bipartisan agreement, which, let’s be honest, is a little surprising these days. Tether, having been around since 2014, seems keen to get ahead of the curve. Ardoino called it “significant” that lawmakers are finally recognizing the work they’ve been doing.
USDT, currently the biggest stablecoin around with a supply of roughly 145 billion tokens, has found a home in crypto trading and in countries where local currencies are…unreliable. But this new coin? It’s about speed. Banks want to move money quickly, and stablecoins *could* offer a solution. The question, of course, is whether they can convince regulators – and the banks themselves – that it’s a safe solution.
There’s a bit of a transparency issue hanging over Tether, though. They haven’t exactly been forthcoming with a full independent audit of their reserves. Instead, they release quarterly “attestations” signed by BDO Italia. It’s…not the same thing. They recently hired a new CFO, Simon McWilliams, to tackle the audit issue, and Ardoino says getting a Big Four firm on board is a “top priority.” Circle, Tether’s rival with the USDC stablecoin, *does* have its financials audited by Deloitte, so the pressure is on. It’s a bit like showing up to a potluck with a store-bought dessert when everyone else brought homemade pies.
The whole thing feels like a turning point. Tether, once a bit of a wild west operator, is now talking about meeting institutional standards and navigating a regulatory landscape. It’s a sign that the crypto industry is, slowly but surely, growing up. Or at least, trying to look like it is.
