Tether, New stablecoin launch announced in the U.S. this year
Tether, the world's largest dollar-based stablecoin issuer, announced plans to officially enter the US market. Tether's CEO Paolo Ardoino stated in an April 30 interview, “We could introduce a new stablecoin within the United States as early as the end of this year, or at the latest, early next year,” adding that the launch timing depends on the progress of related legislation.
The USDT issued by Tether currently records a market capitalization of about $150 billion and holds around a 66% share of the global stablecoin market. As of 2024, it is expected to reap a net profit of about $14 billion, making it one of the most profitable stablecoin issuers. Tether generates revenue by issuing USDT backed by physical dollars and investing in high-liquid income assets such as US treasury bonds.
However, within the US, the competing firm Circle's USDC is showing strength. USDC has accelerated its spread following President Trump's recent election and has secured a lead in the United States with a market capitalization exceeding $60 billion. Consequently, Tether is pursuing a strategy of enhancing trust through increased cooperation with US regulatory agencies and emphasizing the economic value of its stablecoin.
Ardoino claimed, “We are essentially exporting the best product the US has made, the dollar, around the world,” asserting that USDT positively impacts the US economy. He also explained that “USDT is designed for those excluded from the traditional financial system, like small village residents in Africa or shop owners in Istanbul,” revealing that a different type of stablecoin is being prepared for the US market.
Market research firm Nansen analyzed that the stablecoin market is likely to solidify into a structure where a few strong players dominate most of the market share. What type of product Tether will introduce in the US and how the competitive landscape with the already established USDC will unfold are emerging as key variables in the future market.