USDT’s New Move: A New U.S.-Compliant Stablecoin May Be on the Way

Tether, the world’s largest stablecoin issuer, is considering launching a new stablecoin compliant with U.S. laws, in case upcoming legislation bans USDT in the United States. The company’s CEO, Paolo Ardoino, told, “We can create a U.S.-compliant, payment-focused stablecoin.”

According to Ardoino, the current stablecoin USDT is ideal particularly for emerging markets. However, to comply with U.S. regulations, he states that they need to be present in the market with a different product: “We need to develop two products with two different value propositions.”

Tether Responds to Competitors: No Exit from the U.S., Strategy is Shifting

The STABLE Act and GENIUS Act advancing through the U.S. Congress require foreign-based stablecoin issuers like USDT to comply with the U.S. Bank Secrecy Act and submit to transparent reserve audits. However, Tether, which has not undergone a full audit so far, faces concerns that it may exit the U.S. market due to these requirements.

Tether’s CEO denies these claims and says competitors are making “desperation-scented” speculations. Speaking from the Cantor Fitzgerald office in the U.S., Ardoino noted that Tether’s U.S. Treasury reserves are custodied there.

Tether’s priority seems to remain emerging countries. Ardoino believes that even if USDT does not fully comply with U.S. regulations, it will continue trading on secondary markets. He also emphasized that USDT is unlikely to be banned on DeFi platforms such as Uniswap.

Is USDT Withdrawing from Europe Too? Tether’s Local Stablecoin Strategy

On the European side, Binance delisted USDT from its platforms in the EU. This led Tether to invest in local, regulation-compliant stablecoin projects in Europe using a similar strategy. Ardoino admits that in the long run, USDT may no longer play a major role in either the U.S. or Europe.

These developments show that Tether is reshaping its global strategy and following a flexible path in response to regulations.

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Tether Increases Stablecoin Supply by Issuing 1 Billion USDT on the Tron Network

Tether has issued an additional 1 billion USDT tokens on the Tron network. Tether’s CEO, Paolo Ardoino, stated that the newly issued 1 billion USDT is intended for inventory replenishment. He explained that this transaction is authorized but not yet released to the market, and the amount will be used as inventory for future issuance requests and cross-chain swaps.

This move reflects Tether’s strategic approach to liquidity management, aiming to regularly manage the supply of stablecoins and maintain market stability.

The action taken by USDT Treasury, with the issuance of 1 billion USDT on the Tron network, has led to a significant increase in the stablecoin supply. The issuance aims to boost liquidity on the Tron blockchain platform and further promote the use of digital assets.

Tether’s move underscores its strong presence in the stablecoin market and highlights the increasing global acceptance of digital currencies. Notably, this growth on the Tron network demonstrates how Tron has become a major player in the realm of digital assets and stablecoins, especially when compared to other blockchain platforms.

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