Tether plans to launch a new stablecoin for the U.S. market later this year. While Tether remains the dominant issuer internationally, in the United States it still lags behind USDC. The new product is an attempt to shift that balance.
Plans and Limitations
CEO Paolo Ardoino told CNBC that the company aims to launch the stablecoin by the end of 2025 — or early 2026 if more time is needed for regulatory alignment. He noted that the U.S. launch depends on the progress of stablecoin regulatory legislation.
Currently, Tether’s flagship product — USDT — is mainly used outside the U.S. Ardoino emphasized that the token is targeted at users in developing countries, including in Africa and the Middle East. The new stablecoin will be specifically designed for the American audience and regulatory standards.
Exporting the Dollar via Blockchain
According to CoinGecko, USDT’s market capitalization has reached $150 billion. As of April 25, research firm Nansen reported that its market share among stablecoins stood at approximately 66%. Ardoino refers to USDT as “America’s best export product,” citing its popularity in countries with limited access to the U.S. dollar.
Tether’s model is based on issuing USDT against real U.S. dollar deposits, with the funds invested in short-term assets, primarily U.S. government bonds. In 2024, the company reported nearly $14 billion in net profit.
MiCA Pressure and European Restrictions
Despite these successes, Tether has faced significant restrictions within the European Economic Area. As of March 31, 2025, Binance suspended spot trading for USDT and other major stablecoins, including DAI, FDUSD, TUSD, USDP, and UST. This change follows the enforcement of the first phase of the MiCA regulation, which requires prior certification of digital assets by issuers.
Derivatives trading involving USDT remains available in the EU for now, but the tokens themselves no longer meet the criteria for listing on regulated spot markets. Other exchanges including Kraken, Crypto.com, and OKX have adopted similar measures.
Competition With USDC and Market Impact
As USDT exits European platforms, pressure from competitors is mounting. USDC, issued by Circle, is gaining ground in the U.S., especially after Donald Trump’s victory in the November election. USDC’s market cap has already surpassed $60 billion. According to Nansen, interest in USDC within the U.S. has surged following the election.
Ardoino states that the stablecoin market will remain highly competitive, though he acknowledges that the “winner takes all” model still applies. This suggests one player may eventually dominate. Tether is betting on scale, profitability, and global brand recognition, while Circle emphasizes compliance with U.S. regulatory requirements.
The Role of Alternative Backing
At the same time, Tether co-founder Reeve Collins previously discussed the potential for stablecoins to be backed by more than just fiat currencies. He pointed out that assets such as commodities, gold, and income-generating financial instruments — like money market funds — could offer real alternatives to the U.S. dollar.
According to him, the tokenization of real-world assets will play a key role in the future of the stable digital currency market.
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