Tether Returns to the United States Market
In a significant move, Tether, the issuer of the world's second-most widely-used stablecoin, has announced plans to launch operations in the United States for the first time. This marks Tether's first entry into the US news market since being barred from New York markets four years ago.
The new operations come amidst regulatory clarity provided by the Genius Act, signed by President Trump last week. The new regulations establish federal oversight for stablecoins, providing a clear path for Tether's US news operations.
Tether aims to challenge Circle's dominance in American markets with its USDT token, which has $162 billion outstanding, making it the largest stablecoin globally and the most-traded crypto asset by volume. Circle's USDC token currently controls the domestic stablecoin sector in the US.
However, long-standing concerns about Tether's transparency persist, as the company has never completed a full audit despite years of promises. This contrasts with Circle, whose stock has increased more than 500% since its June public offering, indicating investor confidence in the company's practices.
Tether CEO Paolo Ardoino announced plans to serve US institutional clients, targeting banks and trading firms rather than retail users. Ardoino has also acknowledged discussions with auditing firms but provided no timeline for completing reviews.
Notably, Tether paid a $60 million settlement to resolve federal and New York state charges over misrepresentation of dollar reserves in 2021. The settlement resulted in Tether being banned from operating in New York.
Despite these challenges, Tether continues to expand in developing markets, where it sees competitive advantages over rivals. The company's entry into the US news market could shake up the stablecoin landscape, offering more choices for institutional investors.
Interestingly, Tether CEO Paolo Ardoino attended Trump's White House signing ceremony last week, alongside other crypto executives. However, Tether has not yet announced plans to go public, unlike Circle. The company plans to remain a private company.
As Tether prepares to enter the US news market, it remains to be seen how the company will address concerns about transparency and whether it can successfully challenge Circle's dominance. The lack of information about which audit institute has recently discussed conducting a full evaluation of Tether adds an element of uncertainty to the company's plans.
In the meantime, the stablecoin market continues to evolve, offering new opportunities and challenges for players in the crypto space.
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