Tether plans to launch a new type of stablecoin targeting the US market

As the world's largest stablecoin issuer, Tether is closely monitoring the progress of cryptocurrency legislation in the United States. Company executives have stated that once the relevant bills are passed, they will act swiftly to launch a new stablecoin product for the U.S. market.

The CEO of Tether revealed in an interview that the company is actively communicating with regulators to explain the importance of its business on a global scale and to explore potential development directions in the U.S. He expects that if the legislative process is completed as planned before August, Tether will quickly take action.

The executive stated that the new stablecoin aims to meet the needs of banks, institutions, and payment processors. Tether plans to establish a new entity in the United States, potentially named Tether USA, which will be regulated at the federal level under new legislation.

Currently, Tether's market circulation reaches $144 billion, far exceeding other competitors. Unlike traditional cryptocurrencies, stablecoins are pegged to the US dollar and are backed by safe assets such as government bonds to ensure their value stability. This characteristic makes stablecoins an ideal tool for cross-border fund transfers and cryptocurrency transactions.

The newly launched stablecoin may be used in areas such as payments, the digital economy, and interbank settlements. Tether has been actively investing in its distribution network, including investments in video platform companies that may promote the adoption of its stablecoin.

As the legislative process accelerates, competition in the stablecoin sector is becoming increasingly fierce. The House Financial Services Committee has approved related bills and submitted them for consideration by the full house. The Senate has also passed similar legislation, with an expectation to complete the legislative process before August.

Tether is also exploring the possibility of continuing to trade its existing USDT on U.S. platforms. The company is communicating with lawmakers in hopes of retaining USDT on the U.S. secondary market while focusing on international markets. To enhance the liquidity of the new stablecoin, the company expects to allow market makers to perform one-to-one conversions between U.S. stablecoins and USDT.

Company executives stated that Tether currently has no plans for an IPO and does not need to raise funds for the new entity established in the United States. They are maintaining close contact with asset management partners to prepare for future developments.