As the regulatory landscape around stablecoins heats up in the United States, Tether—the issuer of the world’s largest stablecoin USDT—is preparing to Start a separate stablecoin designed specifically for the U.S. market. This move comes as the company expresses confidence in the proposed Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), which aims to provide clearer rules for stablecoin issuers in America.

Tether CEO Paolo Ardoino recently shared insights into this evolving strategy during an interview with Bloomberg. He emphasized that while USDT will continue to focus on emerging markets where stablecoins are widely used by unbanked populations, the new domestic stablecoin will better suit the unique demands of U.S. users and regulators.

USDT’s Role in Emerging Markets Remains Strong

Tether’s USDT stablecoin has become a vital financial tool in developing regions, especially in parts of Sub-Saharan Africa and Asia where millions of adults lack access to traditional banking services. According to the World Bank, approximately 1.4 billion people worldwide remain unbanked, making digital dollar alternatives like USDT critical for remittances and savings.

Ardoino highlighted that nearly 37% of USDT users hold the stablecoin as a means of preserving their savings amid local currency depreciation and economic instability. “They need something stable in their lives, and that is the U.S. dollar in digital form,” Ardoino explained, stressing the importance of USDT in these markets.

Because of this, USDT’s primary market focus will remain overseas, helping to address the needs of unbanked and underbanked populations who rely on stablecoins for financial security and cross-border transfers.

Why the U.S. Needs a Different Stablecoin

While USDT dominates in emerging economies, the situation in the U.S. is markedly different. Ardoino noted that Americans have a broad array of payment options, including credit cards, bank transfers, and digital wallets, which reduces the need for stablecoins to improve payment efficiency domestically.

For this reason, Tether plans to introduce a separate, domestically issued stablecoin tailored to the U.S. market. This new stablecoin will feature a distinct design and “different feature set” to better compete within the established U.S. financial ecosystem.

The Start timeline for this U.S.-focused stablecoin is expected in the “second half” of the year, according to Ardoino, signaling that Tether is actively preparing to meet the specific regulatory and market demands stateside.

The GENIUS Act and Regulatory Clarity

Regulation has been a major topic for stablecoin issuers in the U.S., and the GENIUS Act is the government’s latest attempt to provide a clearer legal framework. The legislation proposes strict reserve requirements, including a mandate for stablecoin issuers to hold 100% of their reserves in cash or cash equivalents like U.S. Treasury securities.

Ardoino praised the GENIUS Act’s approach, stating it is superior to Europe’s MiCA regulation, which demands that stablecoins hold 60% of reserves in cash deposits at European banks—a requirement he called a “bad idea.” In contrast, he described the GENIUS Act’s reserve requirements as a “great idea” that will bring stability and trust to the U.S. stablecoin market.

Tether has expressed commitment to complying with the GENIUS Act, whether as a foreign issuer with USDT or as a domestic stablecoin issuer once its new product Start. However, Ardoino emphasized the importance of the act’s final passage before moving forward with the U.S. stablecoin rollout.

What’s Next for Tether and Stablecoins in the U.S.?

The U.S. Senate is currently advancing the GENIUS Act through the legislative process, with a final vote expected after the Memorial Day recess. Market participants and crypto watchers are keenly observing the outcome, as the legislation will shape the future of stablecoins in America.

Tether’s dual approach—continuing USDT’s dominance in global emerging markets while preparing a separate stablecoin for U.S. consumers—reflects an adaptive strategy that recognizes the different needs and regulatory environments in each region.

As Ardoino noted, regulatory clarity is critical to fostering innovation and adoption. “It’s important for the domestic one [U.S. stablecoin] to have regulatory clarity before moving forward,” he said.

If passed, the GENIUS Act could offer a clear path for stablecoins to thrive in the U.S., enabling companies like Tether to provide safer, more transparent products. Meanwhile, USDT’s established role in emerging markets will continue to support millions of users who rely on digital dollars every day.

Conclusion

Tether’s Reveal signals a major step in the maturation of stablecoins as financial tools globally. By tailoring products for different markets and aligning with emerging regulations like the GENIUS Act, Tether aims to maintain its leadership while responding to the nuanced demands of users worldwide.

With USDT’s ongoing focus on unbanked populations outside the U.S. and a new, regulated stablecoin planned for domestic users, the stablecoin landscape in 2025 looks poised for growth, innovation, and greater regulatory oversight.