Tether Exploring the New U.S.-Only Stablecoin Strategy

Tether (USDT-USD), the world’s most traded crypto token, is considering a change, launching a U.S.-specific stablecoin for the first time. This marks a significant shift for the company, which has never really opened its doors to American customers before. But now, with the Trump administration signaling a more open attitude towards crypto, things might be changing quickly. 

Trump’s Crypto Pivot: A Green Light for Stablecoins?

In an exclusive interview with The Financial Times, Tether CEO Paolo Ardoino revealed that his team is actively discussing the idea of a U.S. stablecoin. According to Ardoino, Trump’s administration sees stablecoins as “an important instrument for the United States” and is pushing for draft rules to be ready by August.

“If the new rules make U.S. domestic stablecoins competitive, there could be an interest from Tether to create a domestic stablecoin in the U.S.,” Ardoino said. The new coin would mainly work as a settlement currency, a tool to help move money faster and more efficiently.

Tether’s Reach: Global Impact, But Not Yet in the U.S.

Right now, Tether has a whopping $144 billion worth of tokens in circulation worldwide. But despite its global influence, the company doesn’t allow U.S. users to onboard. That could soon change if the regulatory environment becomes more welcoming.

Tether also faces ongoing criticism about its reputation in crypto circles. It’s often been labeled as a go-to tool for shady transactions. But Ardoino pushed back against that view. He emphasized that the company works closely with U.S. law enforcement agencies like the FBI and the Secret Service.

“We don’t wait for court orders to act,” he said. “We actually have a direct connection with law enforcement.”

Profits Without an Audit: A Closer Look

Despite not having official audited financials, Tether still managed to report a record-breaking $13 billion in net profits last year. Most of that money came from interest earned on U.S. Treasuries, which back its token reserves.

Ardoino also confirmed that Tether is in active talks with one of the Big Four accounting firms, finally delivering on its long-promised audit. When asked about the rapid pace of change under Trump, Ardoino simply responded, “It’s just two months… but it’s crazy.”

Circle Enters the Spotlight

Tether’s potential U.S. move puts pressure on rival stablecoin issuer Circle (USDC-USD), which just filed for an IPO. Last year, Circle made $1.66 billion in revenue, but its net income dropped to $156 million. The company also saw its costs increase significantly, especially with partners like Coinbase.

Now, with Tether possibly stepping into the U.S. market, the competition between the two stablecoin giants could intensify.

What’s Next for the Stablecoin Market?

If the Trump administration continues its regulatory shift, the U.S. could become a hotbed for stablecoin development. And with Tether showing interest in joining the game, a showdown might be coming. Currently, Tether is trading at $0.9994 amid crypto fluctuations, which reflects its growth potential. 

Whether Tether’s U.S.-Only stablecoin can hold a $1 peg for a long time remains to be seen, but one thing is clear: The stablecoin war is heating up, and the world is watching.

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