Tether, the renowned issuer of stablecoin USDT (Tether), has announced an ambitious plan to launch a new stablecoin product in the United States by the end of 2023 or early 2024. In a recent interview with CNBC, CEO Paul Ardoino emphasized that the timeline will largely depend on the progress of stablecoin legislation by US lawmakers.
With a market capitalization nearing $150 billion, Tether’s USDT is already positioned as a leading player in the stablecoin sector, holding a commanding 66% market share according to data from Nansen. As part of its strategy to gain traction in the US market, Tether aims to foster collaborative relationships with US regulators, showcasing USDT’s advantages for the American economy.
“We are just exporters of what we believe to be the best product the United States ever created — that is, the US dollar,” Ardoino remarked, underlining Tether’s commitment to aligning with regulatory expectations while enhancing its value proposition.
The stablecoin issuer has successfully carved a niche, earning a net income of nearly $14 billion in 2024 by minting USDT in exchange for US dollars and investing these funds into yield-bearing instruments like US Treasury bills. However, its popularity is currently skewed towards users outside the United States, with competitor USDC gaining traction domestically.
As Tether paves the way for its new product tailored for US customers, the landscape of the stablecoin market is expected to shift. Ardoino noted that USDT was initially designed for users in developing regions, but the forthcoming US product will cater specifically to the needs of the American market.
Despite the competitive landscape, Tether’s established presence and innovative approaches position it well for continued dominance. The stablecoin market remains a ‘winner-takes-most’ dynamic, suggesting that Tether’s upcoming launch could fortify its leading status.
