Tether (USDT) is preparing to launch a U.S.-based dollar-pegged token as early as this year.
The move marks a strategic shift for a company long viewed warily by U.S. regulators. CEO Paolo Ardoino revealed the plan during an interview at the Token2049 conference in Dubai, according to CNBC.
While details remain limited, the domestic stablecoin would differ from Tether’s existing USDT product, which circulates widely in global crypto markets. It comes amid regulatory tailwinds for its flagship stablecoin.
“A domestic stablecoin would be different from the international stablecoin,” Ardoino told CNBC at the Token2049 conference.
“It depends on the timeline of the final legislation… but we are looking at that by the end of the year, or early next year at the fastest.”
Now headquartered in El Salvador, Tether is committed to gaining traction in Washington. Ardoino has reportedly held private meetings with lawmakers, including a lunch on Capitol Hill with Senator Bill Hagerty.
That outreach coincides with a political environment that is more receptive to crypto under President Donald Trump. The GOP-backed GENIUS Act, now under discussion in Congress, could allow foreign stablecoin issuers like Tether to operate domestically if they agree to work closely with U.S. law enforcement—a requirement Ardoino says the firm already meets.
“There is no company… even in the traditional financial system, that has such a breadth of collaboration with law enforcement,” he said. “We are always trying to do better and more to block criminal activity.”
Tether Posts $1 Billion Profit in Q1
Tether’s record on transparency has drawn scrutiny in the past. In 2021, it paid $18.5 million to settle with the New York attorney general over allegations it misrepresented its reserves.
Since then, the firm has hired independent auditors, partnered with Cantor Fitzgerald to manage its U.S. Treasury holdings, and claims to hold nearly $120 billion in government debt with $5.6 billion in excess equity, according to its latest attestation.
In the first quarter of the year, the firm posted a profit of $1 billion on the reserves backing its stablecoins, which include U.S. Treasurys and cash equivalents.
The stablecoin giant moves excess capital to strategic investments that diversify its revenue. These include renewable energy, data infrastructure, artificial intelligence, and stakes in public companies like Italian football club Juventus and South American agricultural firm Adecoagro.
