Author: Yueqi Yang
Translated by: Block unicorn
Tether, the world's largest stablecoin issuer to date, says it plans to create a new stablecoin for the U.S. market if cryptocurrency legislation is passed by Congress this year.
In an interview with The Information, Tether CEO Paolo Ardoino said the company would "act quickly" to create a new token once the expected stablecoin legislation is passed.
Last Friday, Ardoino said in an interview at Cantor Fitzgerald's Midtown Manhattan office, where Tether's reserve assets such as U.S. Treasuries are managed, that the new stablecoin is "something that can meet the needs of banks, institutions, and payment processors".
He said Tether plans to establish an entity within the United States after legislation is passed this year, possibly named Tether USA. Tether recently moved its headquarters to El Salvador. He expects the new entity to be regulated at the federal level according to the legislation. "Given that legislation is expected to pass around August, or before August as we anticipate, if this timeline remains unchanged, we will act quickly," he said.
"We are actively discussing with regulators, explaining the importance of the work we do outside the United States and what we can build within the United States," he said.
The stablecoin legislation rapidly advancing in Congress could potentially ban Tether from the U.S. market due to its lack of U.S. registration. Tether's market circulation is $144 billion, over $80 billion more than the second-ranked stablecoin (operated by Circle).
Unlike other more volatile cryptocurrencies, stablecoins are pegged to the U.S. dollar and backed by Treasury bonds and other safe assets to protect their value. Stablecoins are a convenient way to transfer funds across borders and trade cryptocurrencies. Tether has been criticized for its stablecoin (called Tether or USDT) being used by drug dealers and terrorist organizations. Tether says it works with law enforcement to freeze assets used by criminals.
Tether has hired Cantor Fitzgerald to manage the assets supporting its stablecoin. The company, managed by Howard Lutnick until he becomes U.S. Secretary of Commerce, continues to manage these assets.
Ardoino said the new stablecoin could be used for payments, digital economy, and interbank settlements. Tether has been investing in its own distribution network—a portfolio of companies that might drive stablecoin adoption, such as its $775 million investment in the listed video platform Rumble.
As Congress rapidly passes legislation, competition affecting stablecoin legislation is heating up. On Wednesday, the House Financial Services Committee approved the stablecoin bill, sending it to the full House. Last month, the Senate Banking Committee passed a similar bill, and President Donald Trump stated his goal is to sign stablecoin legislation before August.
Tether is also exploring ways for USDT to continue listing on U.S. platforms after legislation passes. Ardoino said he is negotiating with legislators to explain Tether's operations and hopes USDT can remain on U.S. cryptocurrency exchanges' secondary markets, focusing on international markets.
To increase liquidity for its new stablecoin, he expects market makers with both stablecoins to help facilitate one-to-one conversions between the U.S. stablecoin and USDT.
Ardoino stated that Tether has no plans to go public and does not need to raise funds for the new entity planned in the United States. In contrast, Circle has applied for an initial public offering.
Ardoino said he could not meet with Lutnick due to potential conflicts of interest but called him a "private friend" and a "great person".
His primary contact at Cantor is currently Howard Lutnick's son, Brandon Lutnick. "Great guy, very smart. Very grateful he leads Cantor," he said.
