There’s little doubt that Tether has conquered the world with USDT. With a market cap of $171 billion, it outpaces all other stablecoins combined.

Earlier this month, Tether introduced a new U.S. dollar stablecoin, USA₮, to compete with USDC in the domestic market under U.S. law.

The company named Bo Hines to lead its U.S. unit and build issuance and custody around Anchorage Digital and Cantor Fitzgerald, a move disclosed after Congress enacted a federal framework for fiat-referenced tokens.

USA₮, or USAT, is designed to meet the new regime’s reserve and disclosure requirements. The legislative backdrop arrived on July 18 when the GENIUS Act was signed, setting monthly reserve attestations, high-quality liquid asset backing, and clear supervisory lanes for both bank and qualified non-bank issuers.

The competitive field tightened further after Circle completed an initial public offering that raised about $1.05 billion, with shares priced at $31.

The near-term contest now centers on onshore distribution and reserve income

U.S. merchants and payment processors want tokens that fit cleanly within money-movement and treasury policies. This means monthly reserve certifications, bankruptcy-remote structures, and straightforward redemption mechanics.

The GENIUS Act bans issuer-paid yield, which puts the commercial model on a float scale and operating efficiency.

Circle’s structure routes most reserves into BlackRock’s Circle Reserve Fund, a money-market-style vehicle invested in short-dated Treasuries and repurchase agreements, while Tether has reported a large U.S. Treasury footprint that has grown with stablecoin demand.

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Author: Liam ‘Akiba’ Wright