Tether Gears Up for U.S. Return with Regulated Stablecoin for Institutions

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Tether, the company behind the world’s largest stablecoin, is preparing a significant reentry into the United States, backed by a new regulatory framework under the recently passed GENIUS Act. The firm is planning to launch a fully compliant stablecoin tailored for institutional use, marking a major shift in its U.S. strategy.

Tether CEO Paolo Ardoino told Bloomberg the company is “nearly ready” to re-establish a presence in the U.S. with a product designed to meet modern compliance standards. Historically operating outside U.S. regulatory reach, Tether now aims to offer a stablecoin that aligns with federal requirements, focused on real-time payments, interbank settlements, and institutional digital asset trading.

The GENIUS Act, short for Global Enforcement and National Innovation for Ubiquitous Stablecoins,was signed into law on July 17, 2025 to provides a dual-pathway framework for both domestic and foreign issuers. It requires strict reserve backing, redemption processes, and regular audits for any stablecoin project operating in the United States.

Tether plans to register its existing token, USDT (United States Dollar Tether), under the foreign issuer track while simultaneously developing a new U.S.-compliant coin. The upcoming token will be fully backed by U.S. dollars or Treasury securities and subject to oversight by federal regulators. It is expected to launch before the end of 2025.

“Tether’s re-entry into the U.S. isn’t just a comeback. It’s a transformation. We are building for institutions, with transparency, compliance, and utility at the forefront,” Ardoino said, emphasizing that the coin is intended for financial institutions, fintech firms, and payment processors.

For Tether, which boasts a global circulation exceeding $160 billion, this marks a critical reputational shift. The company has previously faced criticism for its opaque reserve practices and lack of regulatory clarity, particularly in the American market. Now, with compliance as a cornerstone, Tether is looking to embed itself deeper in the U.S. financial ecosystem.

The move also positions Tether to compete more directly with U.S.-based Circle, issuer of USDC (United States Dollar Coin), which has gained favor among regulators and institutions with a circulating supply near $65 billion. Circle has long benefited from its domestic regulatory posture, but Tether’s reentry could significantly challenge that lead.

The GENIUS Act is expected to accelerate stablecoin adoption across the board, potentially encouraging major banks and payment firms to launch their tokens under clear federal guidelines. For Tether, success in the U.S. will depend on maintaining strong compliance practices, transparent reserves, and trusted partnerships with custodial and banking providers.

As stablecoins increasingly anchor themselves in the global financial system, Tether’s institutional-focused pivot may not only reshape its trajectory but set a new standard for the digital dollar economy.