The Pivot
Tether CEO Paolo Ardoino launched a coordinated media campaign this week - Fortune, Bloomberg, Reuters, TechCrunch - timed to USAT's debut. The new stablecoin, issued through Anchorage Digital Bank, marks Tether's first U.S.-regulated product. It's competing directly with Circle's USDC in a market that now includes entries from Fidelity, JPMorgan, and PayPal.
For context: Ardoino spent years offshore while prosecutors investigated and regulators circled. The Economist called Tether "a money launderer's dream" in 2025. Now he's meeting White House officials, the FBI, and the Secret Service.
The Trade-Offs
Tether's flagship USDT ($187B in circulation) can't meet new U.S. requirements, so USAT is a separate product. The company claims $141B in U.S. Treasuries backing its reserves, with $6.3B in excess. It made $10B+ in 2025 profits and works with 300+ law enforcement agencies globally.
But the old questions persist. Tether has never completed a full independent audit - the same transparency gap that triggered regulatory action in 2017 and 2021. Critics note its diversification into AI (>$1B in Neura Robotics), media ($775M for 48% of Rumble), and gold (27 metric tons added in Q4 2025, targeting 10-15% portfolio allocation) looks disconnected from core stablecoin operations.
What This Means
The regulatory window is real. Changed U.S. administration, 536M USDT users in underserved markets (Argentina's peso down 94.5% vs USD), and banks nervous about stablecoin interest rates threatening deposits all created an opening. USAT faces the question: Can a company with Tether's history build credibility in regulated markets?
Ardoino positions this as financial inclusion - $1.34 daily wages in Haiti, peso instability in Argentina. Skeptics see a company trying to legitimize offshore operations by launching a compliant U.S. product while keeping the profitable, opaque core intact.
History suggests regulatory acceptance takes more than announcements. Circle spent years building bank relationships and compliance infrastructure. Tether's trying to fast-track it with meetings and a new token. We'll see if regulators and enterprises buy the pivot.