It was stated by Tether’s CEO that USDT will continue to be directed toward unbanked populations outside the United States, while a distinct stablecoin is being developed to cater specifically to the U.S. market.
In a statement given to Bloomberg on Friday, Tether CEO Paolo Ardoino indicated that the company is “open to” the development of a separate domestic stablecoin tailored to the requirements of the U.S. market. This announcement was made as the United States continues efforts to advance stablecoin regulation through the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act).
According to Ardoino, the global issuer of the largest stablecoin, USDT, is “getting comfortable” with the GENIUS Act and intends to ensure compliance. Nevertheless, it was emphasized that USDT will remain primarily focused on emerging markets, as these regions are viewed as having the greatest need for the stablecoin, he noted, stating:
We believe in the importance of USDT as the most used digital dollar in all the emerging markets.
Ardoino further mentioned that Tether’s timeline for introducing a domestically issued U.S. stablecoin should be considered “closer to the second half,” using a football game analogy to describe the stage of their plans.
Why Tether Sees the Need for a Distinct U.S. Stablecoin
An estimated 1.4 billion adults worldwide are still unbanked, with the majority residing in emerging regions across Sub-Saharan Africa and parts of Asia, according to the World Bank. Addressing the financial needs of these individuals—who lack access to conventional banking systems—has been identified by Ardoino as Tether’s primary mission.
In emerging markets, USDT is primarily utilized by stablecoin users for cross-border remittances and safeguarding their savings against the devaluation of local currencies. According to Ardoino, approximately 37% of USDT holders rely on the stablecoin for saving purposes. It was also noted that Tether currently serves more than 420 million users throughout developing nations, as he further explained:
They [unbanked adults] need something that is stable in their lives, and that is the U.S. dollar in digital form, that is USDT.
It has been acknowledged that the United States requires a stablecoin to fulfill objectives distinct from those of users in emerging economies. While Tether has consistently advocated that “stablecoins hold significant value within the United States,” Ardoino explained that, due to the broad range of existing payment options available domestically, USDT is more appropriately positioned to address the needs of unbanked populations elsewhere. He further stated:
In the U.S., you wouldn’t use stablecoins for payments to improve the efficiency of our money.
As a result, the introduction of a domestically issued stablecoin is being considered by Tether, with the intention of making it “competitive” within the U.S. financial landscape. Ardoino noted that this new stablecoin will be designed with a “different feature set” compared to USDT to better align with the specific needs of the domestic market.
Tether Supports Passage of the GENIUS Act
It was expressed by Ardoino that Tether is “highly interested” in observing the regulatory approach the U.S. government will take regarding stablecoins. He remarked:
It’s important for us to see how the GENIUS Act is, in fact, distinguishing between the foreign issuers and the domestic issuers.
It has been planned by Tether to ensure USDT’s compliance with the GENIUS Act, which, according to Ardoino, is considered more favorable than the European Union’s MiCA regulation. The concern raised by Tether regarding MiCA lies in its requirement for U.S. dollar-backed stablecoins to maintain 60% of their reserves as cash deposits within European banks—an approach Ardoino described as a “bad idea.”
In contrast, the GENIUS Act mandates that stablecoin issuers maintain 100% of their reserves in cash equivalents, with a preference for U.S. treasuries—a requirement that was described by Ardoino as a “great idea.”
Ardoino expressed no expectation of difficulties in adhering to the GENIUS Act, regardless of whether Tether operates as a foreign or domestic stablecoin issuer. Nonetheless, he emphasized his desire to see the GENIUS Act enacted, stating:
…in general, we think that it’s important for the domestic one [U.S. stablecoin of Tether] to have regulatory clarity before moving forward.
On May 19, a vote was held by the U.S. Senate to invoke cloture on the motion to advance the GENIUS Act. Subsequently, on May 21, a motion to proceed was approved by the Senate, thereby shifting the GENIUS Act toward a final passage vote. The concluding floor vote is anticipated to occur following Congress’s Memorial Day recess.
