Tether's US-regulated stablecoin, known as USAT, exploded from $22 million to nearly $141 million in just one month. This growth rate of 540% stands as the fastest for any regulated dollar token this year, according to a reserve report signed by Deloitte. Yet, despite this surge, USAT makes up just 0.08% of Tether's total USD stablecoin supply.
Launched in January with a modest $10 million supply, USAT gradually gained traction, reaching $17.6 million by the end of January and $22 million by March before this recent rapid escalation. In contrast, Tether’s primary offshore token, USDT, has trimmed its circulation by about $6 billion, decreasing from nearly $190 billion in May to roughly $184 billion by late July. That’s a stark difference one is booming on a micro scale, the other contracting on a massive level.
A Unique Setup and Regulatory Bet
The USAT stablecoin is issued through Anchorage Digital Bank and backed by reserves custodied by Cantor Fitzgerald, marking a distinct structure from its parent. It’s led by the former executive director of the White House Crypto Council, emphasizing its intent to comply with the US stablecoin regulatory framework.
Interestingly, while USAT publishes reserve reports certified by Deloitte, the much larger USDT operates under attestations that don't meet federal standards. This suggests USAT isn’t just a product but a strategic move by Tether. It’s a regulatory option designed as a hedge in case the stablecoin landscape shifts under new US laws.
Though USAT’s current market share seems negligible compared to giants like Circle’s USDC or PayPal’s PYUSD, its rapid growth hints at a future where regulatory-compliant dollar tokens could gain more prominence. At this stage, USAT is more a statement of intent than a big deal in the stablecoin world.
This material is for informational purposes only and not financial advice.
