Tether Plans U.S. Dollar-Pegged Stablecoin Launch
Tether, the leading stablecoin issuer, is set to introduce a U.S.-based dollar-pegged stablecoin this year or early 2025. CEO Paolo Ardoino shared this news during the Token2049 conference in Dubai. The new stablecoin will be distinct from Tether’s international offerings.
ardoino’s declaration comes as he intensifies lobbying efforts in Washington, D.C. He aims to shape crypto regulations, especially under the influence of former President Donald Trump’s allies. His meetings include a Capitol Hill lunch with Senator bill Hagerty and discussions with other lawmakers.
These efforts align with the GOP’s GENIUS Act,which could simplify U.S. operations for foreign stablecoin issuers that collaborate with law enforcement. Tether,based in el salvador,has faced regulatory challenges. In 2021, it settled claims with the New York attorney general for $18.5 million over reserve misrepresentations.
Currently, Tether claims to hold nearly $120 billion in U.S. Treasuries, managed by Cantor Fitzgerald. Its Q1 audit revealed $5.6 billion in excess reserves, down from $7 billion at year-end.
The U.S. expansion could spark a domestic stablecoin competition. Eric and Donald trump Jr. are planning their own dollar-backed stablecoin, linked to their father’s political brand. this could lead to a meaningful shift in the stablecoin landscape.
