Tether has announced the launch of a new dollar-backed stablecoin, USA₮, alongside the appointment of former White House crypto adviser Bo Hines as CEO of Tether USAT.
According to Tether, the new stablecoin will comply with the reserve and compliance standards set out in the recently passed GENIUS stablecoin bill. It will also run on Tether’s Hadron platform, which focuses on real-world asset tokenisation.
Market Growth and Strategic Importance
The stablecoin market recently passed the $270 billion mark, data from RWA.XYZ shows. Tether CEO Paolo Ardoino highlighted the company’s commitment to strengthening the dollar’s role in global finance:
“Tether is already one of the largest holders of US Treasuries because we believe deeply in the enduring power of the dollar. USA₮ is our commitment to ensuring that the dollar not only remains dominant in the digital age, but thrives.”
Stablecoins have emerged as a major policy issue for the administration of US President Donald Trump and are attracting attention worldwide, including in China.
Bo Hines’ Return to the Private Sector
Bo Hines stepped down from the White House Crypto Council in August, shortly after the release of the government’s Strengthening American Leadership in Digital Financial Technology report. The paper outlined future crypto policy in the US, with a full section dedicated to stablecoins and payments.
His move to Tether USAT signals a shift back into the private sector at a time when stablecoin regulation and strategy are gaining momentum globally.
Policy and Global Reactions
In March, US Treasury Secretary Scott Bessent described stablecoins as a tool for maintaining US dollar dominance by making it easier to access through digital channels. Overcollateralised stablecoins, such as those backed by government debt, are seen as a way to support inflation management by distributing currency to meet rising demand.
Meanwhile, other countries are moving forward with their own plans. Hong Kong’s new stablecoin regulations are drawing interest from banks and institutions looking to issue yuan-backed stablecoins.
However, not all global leaders view this trend positively. A senior adviser to Russian President Vladimir Putin has accused the US of using stablecoins to devalue its debt.
