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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In an announcement on its official website on December 4th, Binance said the new stablecoin, Anchored Coins EUR (AEUR), will be listed at 13:00 on December 4th (local time).

Binance stated that AEUR deposit transactions have begun and withdrawal transactions will start a full day after the listing time. Along with this listing, It will offer investors the opportunity of trading with four different pairs; AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR.

Binance also announced that until the next announcement, zero-maker-fee campaign will continue in all AEUR spot trading pairs

AEUR, represents a significant step in the realm of stablecoins and payment tokens within the European landscape. Functioning on both the Ethereum network and Binance Smart Chain (BSC), AEUR distinguishes itself by its steadfast backing—a 1:1 peg to the Euro currency. This unique feature not only ensures stability but also instills confidence among users.

By integrating AEUR into their platform, Binance aims to diversify and enhance the cryptocurrency trading experience for its users. The inclusion of AEUR provides an additional layer of choice and flexibility within the volatile crypto market. As a Europe-based stablecoin, AEUR presents a promising opportunity for users seeking stability and versatility in their crypto transactions.

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