Stablecoin company Tether has launched a new stablecoin called the USAT, as per an official announcement on Tuesday. It will be the first stablecoin that is to operate within the framework of the GENIUS act, implemented in 2025 to create legislative guardrails for stablecoins.
The new coin marks the addition of a U.S. regulated stablecoin backed by the federal government, compared to the majority of the market, where stablecoins are dollar-dominated but backed by corporate U.S. dollar reserves or gold in the case of gold-backed stablecoins.
The update also comes at a time when investors are less confident in the U.S. dollar, due to Trump’s mishandling of international affairs, such as the encouragement of a takeover attempt over Greenland by the U.S. administration. His recent slew of tariff threats against Canada (100%) and multiple countries in the European Union haven’t helped matters either.
Investors are now parking more funds in gold and silver, contributing to the current boom in the metals market.
“Today’s launch marks the formal market introduction of USA₮,” read the official announcement.
“USA₮ is now available to U.S. users seeking a dollar-backed token built to operate within the U.S.’ dedicated federal regime,”
“By issuing through Anchorage and anchoring reserves with Cantor, Tether is borrowing credibility it couldn’t easily create on its own,” said digital assets consultant Lavneet Bansal.
“USDT stays offshore and fast; USAT goes onshore and clean. It’s less a product shift and more a hedge that lets Tether sit at the U.S. table without giving up scale elsewhere,”
When asked if a general loss of confidence in the dollar would hurt the prospects of such a stablecoin, Bansal said, “USAT shouldn’t be seen as an investment at all. It doesn’t protect you from dollar risk or benefit from volatility. It simply tracks the dollar as it is. What it offers is regulatory clarity and reliability, not upside. If it grows, it will be because institutions trust the plumbing, not because people are betting on the dollar’s direction.”