Meet the New Trend: Tether’s Dollar

BTC/USD

Key zone: 116,000 - 118,000

Buy: 118,500 (on a confident breakdown of 117,800 level); target 121,000-122,500; StopLoss 117,800

Sell: 116,000 (on strong negative fundamentals) ; target 113,500-111,500; StopLoss 116,800

After a series of scandals, the world’s largest stablecoin issuer, Tether, officially introduced a new dollar-pegged token, USAT, targeting the U.S. market. The launch marks a pivotal moment for the company as it seeks to strengthen trust among institutional investors.

The main difference of the new product lies in its full compliance with the recently enacted GENIUS Act, championed by the Trump administration. Even the issuance is conducted through Anchorage Digital Bank, a licensed financial institution—underscoring Tether’s break from its previous offshore schemes.

When Tether first launched a stablecoin in 2014, it promised “1 token = 1 dollar.” However, in 2021 it was revealed that the company’s reserves included high-risk assets such as commercial paper, loans, and even questionable arrangements. As a result, the New York Attorney General fined Tether Limited $41.6 million for providing misleading information and making “false statements” about its reserves.

Tether’s reputation was further damaged by active ties with shadow markets: USDT transactions repeatedly appeared on the darknet, in sanctioned jurisdictions, and in money laundering schemes. To improve its standing, Tether ramped up cooperation with authorities and in 2023 alone froze more than $300 million linked to fraudulent operations. Despite these efforts, U.S. regulators remained highly cautious. American funds and corporations largely avoided Tether because of its dubious reserves.

Now, the company has made a real pivot toward legitimacy by launching a new token under U.S. regulatory oversight. The new USAT is designed to remove this barrier and directly challenge Circle’s USDC.

The core USDT still dominates the crypto economy: with over $100 billion in circulation, it is widely used in trading, cross-border payments, and capital protection in countries with currency controls or inflation. In Asia and Latin America, USDT serves as a surrogate dollar. For millions of people, Tether is not an investment but a way to preserve savings. This massive demand for the old token could act as a safety cushion for the company—even if the U.S. experiment fails.

By issuing USAT under U.S. supervision, Tether is building a bridge between crypto and traditional finance. The company now pledges to back USAT exclusively with cash and U.S. Treasury securities. However, these new rules of the game could bring additional risks.

If the USAT project succeeds, it will cement stablecoins as a legitimate part of the global financial system. If it fails, skepticism toward the industry will only grow. One thing is clear: Tether is too big to ignore, but now it must prove it is reliable enough not to fail.

So we act wisely and avoid unnecessary risks.

Profits to y’all!