Tether announced USAT, a new dollar-backed stablecoin tailored for US regulations. Bo Hines, a former White House crypto advisor, will be the subsidiary’s new CEO.
By isolating it from other assets, Tether can permit limited audits that don’t impede its ability to mint new USDT tokens. The firm holds around $100 billion in US Treasuries, so it can significantly commit to USAT.
Tether Launches USAT
Tether, issuer of the world’s largest stablecoin, has been making huge profits lately, but it faces a potential conundrum. New stablecoin regulation could kick USDT out of the US market, unless it agrees to a reserves audit. However, Tether may have found a new solution with its USAT plan:
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Specifically, Tether’s press release claims that USAT will be “established as a US-regulated stablecoin.” Like USDT, it will be pegged to the dollar, but this asset is localized to the American market.
Bo Hines, the former White House Crypto advisor, will be the CEO of Tether USAT after joining the firm last month. This should help smooth over any regulatory difficulties.
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Author: Landon Manning
