The undisputed leader of the stablecoin market - Tether - has announced the launch of USAT, a new regulated digital dollar. In this article, I will help you understand what USAT is, how it differs from the already familiar USDT, and why the company needed another stablecoin. At the end, you will also find a short quick guide to getting started with USAT.
Key Takeaways
- $170B+ Market Cap: USDT remains the world’s dominant stablecoin, with over 500M users and nearly ⅔ of the market.
- $13B Record Profit: In 2024, Tether earned a record $13 billion, becoming one of the largest holders of U.S. Treasury bonds and proving its financial strength.
What Is USAT From Tether?
USAT is a U.S.-regulated, dollar-backed stablecoin created by Tether in accordance with American legal requirements.
Stablecoins are cryptocurrencies whose value is strictly pegged to the U.S. dollar or another stable asset, which keeps their price steady.
If its older “brother” USDT from Tether has long become a standard for global payments, then USAT is focused on the American market and is designed as a digital alternative to cash and traditional payment systems for companies and institutions in the U.S.
And to understand the foundation on which USAT is being launched, it’s important to recall the scale reached by its older brother USDT. Today its market cap has exceeded $170 billion, the number of users has passed 500 million, and it accounts for nearly two-thirds of the entire stablecoin market, valued at around $292 billion. By comparison, the closest competitor - USD Coin (USDC) from Circle - controls only about $73 billion.
This raises the key question: why is Tether, already dominating the global stablecoin industry, launching another one?
USDT keeps gaining strength: by September 2025 its supply reached $171.221 billion, becoming a key source of liquidity in the crypto market. Source: defillama.com
Why Is Tether Launching USAT?
Tether - a company that earned a record $13 billion in 2024 and became one of the largest holders of U.S. Treasury bonds — is making an unexpected move by launching a new project, USAT. Let’s look at the main reasons below.
GENIUS Act Opens the Door for Tether: In summer 2025, the U.S. passed the GENIUS Act - the first law on stablecoins, where every digital dollar must be backed by a real dollar and confirmed with regular reports. For Tether, this became an opportunity: in July, CEO Paolo Ardoino announced a new product, and in September USAT appeared - a stablecoin that Tether itself called “a new chapter of dollar dominance through transparency and innovation.”
“USAT is our commitment to ensuring that the dollar not only remains dominant in the digital age, but thrives - through products that are more transparent, more resilient, more accessible, and more unstoppable than ever before.” - Paolo Ardoino, CEO of Tether
Huge Potential of the U.S. Market: USDT is in the top 5 largest cryptocurrencies and leads worldwide, but its position in the U.S. was weaker. For a long time, USDC dominated here thanks to licenses and strict compliance with the law. Now that the rules are clear, Tether is ready to enter the American market with its experience and resources - fully under local regulations.
Two-Coin Strategy: USDT remains an international stablecoin for millions of people around the world, while USAT is created specifically for U.S. rules and gives Tether access to the American market. Together they complement each other: convenience for the world and full transparency for America.
Key Features of USAT
Without a doubt, the main advantage of new Tether stablecoin is full compliance with U.S. law. But let’s look deeper and see what makes USAT different.
1. USAT Full Reserve Backing
Tether was often criticized for USDT reserves not being fully transparent. With USAT it’s different:
- Each token will be 100% backed by U.S. dollars and short-term Treasury bills. This means it can always be exchanged 1:1 for a dollar.
- Regular audits will also be conducted to increase trust and show transparency.
2. Trusted Partners and Strong Team
The release and circulation of USAT are handled by players with strong reputations. The issuer is Anchorage Digital Bank - the first federally licensed crypto bank in the U.S. The reserves are managed by the investment company Cantor Fitzgerald - one of Wall Street’s oldest giants. Just as important, the project is led by Bo Hines, who previously worked at the White House Crypto Council and took part in shaping U.S. digital asset policy. This means that Tether is taking the most transparent and serious approach so that users have no doubts about the future of USAT.
“We want people to know that Tether is here to participate in the U.S. economy in a huge way.” — Hines
3. Business-Focused Stablecoin
While USDT is popular with traders and people in countries with high inflation, USAT is designed mainly for companies and financial institutions: trade settlements, international deals, and financial operations.
4. Built on Tether Hadron Technology
USAT runs on Tether Hadron - a platform for tokenizing RWA (real-world assets). Thanks to this, it can be not only a “digital dollar”, but also a base for issuing bonds, real estate, and other financial instruments.
What Is the Difference Between USDT and USAT?
At first glance, both tokens are digital dollars from the same company. But in fact, they are made for different tasks and audiences. Below are the main differences between USDT and USAT.
Legal Status and Regulation
- USDT has existed for more than 10 years, but it works outside direct U.S. regulation and does not have an official status in the American financial system.
- USAT is the “official” version, fully subject to U.S. law and focused on the American market.
Reserves and Reporting
- USDT is backed by different assets: Treasury bills, cash, gold, Bitcoin, and other instruments. However, reserve reports are published only once a quarter.
- USAT, on the other hand, is designed with stricter reporting. The focus is on transparency: reserve checks are planned more often - about once a month.
Geography and Users
- USDT is the global leader among digital dollars. It is in demand in countries with limited access to the dollar or banking systems and is widely used in many areas — from everyday payments and transfers to business settlements.
- USAT is designed for the specific needs of the U.S. market: businesses, online stores, and domestic transfers within the United States under regulation.
Image and Use
- USDT is often called the “people’s currency” in the crypto space. It is simple and convenient for storing and transferring worldwide.
- USAT, in contrast, is positioned as the “officially approved digital dollar.” Its role is to be a tool for transparent and legal payments in business and daily life in the U.S.
Comparison of USDT and USAT - two digital dollars from Tether.
Key Uses of USAT Stablecoin
USAT opens up opportunities that are easy to apply in real life. Let’s look at them below:
Everyday Spending: Pay for goods and services directly through crypto wallets, with the speed and convenience of USAT.
Fast Payments: Freelancers and small businesses can receive payments in USAT from anywhere in the world within seconds - funds are available right away.
Transfers: Send USAT to family abroad with low fees, so more funds go directly to them.
Support for Innovation: For entrepreneurs and developers, USAT becomes a foundation for the digital economy and the future of U.S. trade.
Quick Guide to Getting Started With USAT
Starting with USAT was easier than I expected - it only took a few simple steps.
1. Create a USAT Wallet
First, I clicked the “Download Now” button at the top of the page and followed the steps to create my USAT Wallet. During setup, the wallet doesn’t ask for any personal data - it simply generates a 12-word seed phrase that you need to write down and keep in a safe place, because it’s the key to your funds.
2. Obtain USAT
After installing the app, having an empty wallet wasn’t exciting - so I purchased USAT directly inside the wallet with a credit card. No manual address input - the process is fully automated and takes just a couple of minutes. You can also add funds by transferring from an exchange or from friends using a QR code, but using a card is faster and error-free.
3. Store USAT Securely
Now my USAT is stored in Gem Wallet - a self-custody, open-source wallet that provides strong protection for digital assets and gives me full control over my crypto assets.
4. Manage Assets
USAT Wallet works not only with stablecoins (such as USDC, RLUSD on Ripple, USDY, and more) but also with over 100 blockchains. Everything in one place - storage, transfers, staking, connecting to DEX via WalletConnect, and interacting with DeFi. No need to switch between apps - the interface is clear for both beginners and experienced users.
5. Swap USAT
I can easily swap USAT for my favorite coins right in the wallet thanks to the built-in DEX aggregator, which uses top providers and finds the best rates. Just choose a pair - and it’s done.