Tether plans new US dollar stablecoin as reserves near $120 billion amid Washington lobbying

• Q1
  2025
  audit
  shows
  excess
  reserves
  down
  to
  $5.6
  billion
  from
  $7
  billion.
• Tether’s
  reserves
  are
  managed
  by
  Cantor
  Fitzgerald,
  raising
  scrutiny
  over
  potential
  conflicts.
• Competitor
  World
  Liberty
  Financial,
  backed
  by
  the
  Trump
  family,
  also
  plans
  to
  launch
  a
  stablecoin.

Tether,
the
world’s
largest
stablecoin
issuer
by
market
capitalisation,
is
preparing
to
launch
a
US-based
stablecoin
by
the
end
of
2025
or
early
2026.

The
move
marks
a
shift
in
the
company’s
strategy
as
it
aims
to
align
itself
more
closely
with
American
regulatory
frameworks.

While
its
international
USDT
token
is
already
dominant
in
global
crypto
trading,
the
proposed
dollar-pegged
stablecoin
will
be
designed
to
comply
with
domestic
regulations
in
the
United
States.

Tether
CEO
Paolo
Ardoino
revealed
the
development
during
an
interview
at
the
Token2049
conference
in
Dubai.

He
confirmed
the
company
was
awaiting
the
outcome
of
pending
US
legislation
before
finalising
a
launch
timeline.

The
push
coincides
with
Tether’s
broader
attempt
to
reposition
itself
in
the
US
as
a
compliant
and
cooperative
player,
following
past
controversies
over
its
reserve
disclosures
and
regulatory
fines.

Lobbying
efforts
intensify
in
Washington

Tether’s
domestic
pivot
comes
as
Ardoino
increases
his
presence
in
Washington,
DC.

His
recent
efforts
include
private
meetings
with
lawmakers
and
a
Capitol
Hill
lunch
with
Republican
Senator
Bill
Hagerty,
according
to
reports.

The
company
is
now
actively
lobbying
in
support
of
proposed
legislation
like
the
GOP-backed
GENIUS
Act,
which
includes
provisions
that
could
benefit
foreign
issuers
such
as
Tether
if
they
agree
to
cooperate
with
US
law
enforcement.

Ardoino
has
also
underscored
Tether’s
relationship
with
US
agencies,
stating
that
no
other
financial
entity,
traditional
or
crypto,
matches
its
collaboration
level
with
law
enforcement.

While
the
company
was
once
criticised
for
allegedly
enabling
criminal
transactions,
its
new
strategy
focuses
on
transparency
and
legal
compliance
as
a
means
of
gaining
regulatory
approval.

Tether’s
headquarters
remain
in
El
Salvador,
but
the
company’s
efforts
to
develop
a
domestically
compliant
stablecoin
reflect
its
evolving
approach
to
regulatory
alignment.

It
is
positioning
the
new
token
as
separate
from
its
global
USDT
product,
tailored
to
meet
specific
legal
and
financial
rules
within
the
US.

Cantor
Fitzgerald
link
draws
scrutiny

As
part
of
its
reserve
management
strategy,
Tether
holds
billions
in
US
Treasuries
managed
by
Cantor
Fitzgerald,
a
major
Wall
Street
firm.

The
firm’s
Q1
2025
attestation
report
confirmed
holdings
of
nearly
$120
billion
in
Treasuries,
though
its
excess
reserves
declined
to
$5.6
billion
from
over
$7
billion
in
December
2024.

The
Cantor
connection
has
attracted
attention
due
to
the
firm
being
led
by
the
sons
of
US
Commerce
Secretary
Howard
Lutnick.

Ardoino
addressed
concerns
around
conflicts
of
interest,
stating
that
proper
“walls”
are
in
place
and
that
he
does
not
communicate
directly
with
the
secretary.

He
also
emphasised
Tether’s
healthy
capital
position,
noting
$7
billion
in
excess
equity
and
suggesting
that
traditional
institutions
should
emulate
its
model.

In
2021,
Tether
paid
$18.5
million
to
settle
charges
by
the
New
York
attorney
general
over
misrepresentations
about
its
reserves.

Since
then,
it
has
begun
publishing
routine
attestation
reports.

Ardoino
insisted
the
company
is
now
better
capitalised
than
many
traditional
financial
firms
and
prepared
to
withstand
significant
market
shocks.

Domestic
stablecoin
market
heats
up

Tether’s
expansion
into
the
US
stablecoin
market
comes
amid
increased
political
attention.

The
Trump-backed
World
Liberty
Financial
recently
announced
plans
to
launch
its
dollar-backed
token,
adding
to
the
competition
for
regulatory
legitimacy
and
market
share.

While
stablecoins
remain
a
hot
topic
in
Washington,
the
GENIUS
Act
and
other
proposals
could
set
the
stage
for
clearer
compliance
pathways
for
issuers.

Tether’s
ability
to
influence
policy
could
prove
crucial
as
it
seeks
to
enter
a
space
where
scrutiny
is
likely
to
intensify
in
the
run-up
to
the
2026
elections.

Tether’s
move
to
issue
a
domestically
regulated
stablecoin
is
not
only
a
technical
milestone
but
also
a
political
statement.

As
regulatory
conversations
gain
momentum
in
Washington,
its
future
may
depend
less
on
market
dominance
and
more
on
legal
alignment
with
US
financial
policy.