DUBAI, United Arab Emirates — Tether, recognized as the leading stablecoin issuer globally, is gearing up to introduce a U.S.-based stablecoin within this year. This initiative comes as its CEO enhances his engagement with Washington to influence cryptocurrency regulation.
In a recent interview with Finance Newso, Tether CEO Paolo Ardoino disclosed that the company is actively developing plans to launch a new dollar-pegged stablecoin in the United States by year’s end. This development is part of Tether’s effort to reshape its image from being labeled as the “go-to cryptocurrency for criminals” to becoming a collaborative partner for U.S. lawmakers and law enforcement officials.
“A domestic stablecoin would differentiate from the international variant,” Ardoino stated during his conversation with Finance Newso’s Dan Murphy at the Token2049 conference in Dubai. “It hinges on the timeline for final legislation… but we are aiming for a rollout by the end of this year or at the latest, early next year,” he added.
However, the timing and methods of this forthcoming move have stirred scrutiny among legislators in Washington.
Ardoino has been making an assertive push in U.S. political circles, characterized by private meetings with lawmakers, a Capitol Hill lunch alongside Senator Bill Hagerty, and gatherings with crypto advocates. This increased visibility, as noted in a New York Times report, has elevated Tether’s profile amid the pro-crypto environment emerging under President Trump.
This growing presence may be crucial in shaping significant legislation, including the GOP-supported GENIUS Act. Critics express concerns that this act contains loopholes beneficial to Tether and other foreign issuers, such as clauses allowing U.S. operations if there is a collaboration with law enforcement.
With its headquarters in El Salvador, Tether has positioned legal cooperation as a cornerstone of its lobbying strategy despite weathering a history of regulatory challenges.
“No company, even among traditional financial institutions, maintains such extensive collaboration with law enforcement,” Ardoino emphasized. “We continually strive to enhance our efforts against criminal activities… our capabilities significantly outshine those of traditional financial systems, and we demonstrate that on a daily basis.”
Additionally, Ardoino addressed the ongoing inquiries regarding Tether’s capacity to uphold its digital assets. In 2021, the company reached an $18.5 million settlement with the New York attorney general over accusations of misrepresenting its reserves. Since then, it has begun publishing attestation reports and now holds billions in U.S. Treasuries through Wall Street firm Cantor Fitzgerald, with Ardoino asserting that Tether stands well-capitalized should market instability arise.
“We are nearing a reserve of $120 billion in U.S. Treasuries,” he stated. “We also maintain $7 billion in surplus equity within the company. This level of capitalization is extraordinary, and it would benefit traditional financial institutions to emulate our approach to improve their offerings to consumers.”
Recent attestation reports from Tether confirm it holds around $120 billion in U.S. Treasuries, with the independent auditors’ report for the first quarter indicating that assets and reserves surpass liabilities by nearly $5.6 billion, a decrease from over $7 billion detailed in its December audit.
Tether’s association with Cantor Fitzgerald, now managed by U.S. Commerce Secretary Howard Lutnick’s sons, has raised additional questions. Ardoino mentioned to Finance Newso that he does not consult with Secretary Lutnick due to potential conflict-of-interest concerns, but noted, “we maintain excellent relationships with numerous individuals both in the U.S. and Washington.”
Moreover, Eric Trump and his brother Donald Trump Jr. have recently announced their intentions to create a U.S. dollar-backed stablecoin via World Liberty Financial, a finance venture supported by former President Donald Trump.
