Tether announced a new dollar-backed stablecoin and said former White House crypto adviser Bo Hines will become CEO of Tether USAT.
The new stablecoin will be consistent with the reserve requirements and compliance standards of the recently passed GENIUS stablecoin bill, and will use Tether’s Hadron real-world asset tokenization platform, according to a Friday announcement.
Stablecoins recently crossed the $270 billion milestone, according to RWA.XYZ. Tether CEO Paolo Ardoino said:
“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 become a geostrategic policy issue for the administration of US President Donald Trump and are quickly becoming a focus in other countries such as China.
Related: Race for global stablecoin rails heats up with Stripe, Fireblocks launches
Bo Hines joins the stablecoin race
Bo Hines resigned from the White House Crypto Council in August, signaling his return to the private sector.
Hines made the announcement days after the White House released its Strengthening American Leadership in Digital Financial Technology report, outlining the future of crypto policy in the US, which included an entire section on stablecoins and payments.
In March, US Treasury Secretary Scott Bessent said that stablecoins are a tool for the US to maintain dollar hegemony by making the dollar easier to access through digital rails.
Overcollateralized stablecoins buy the debt of the government that issues the underlying fiat currencies for their digital tokens.
This allows the government more leeway to cushion the effects of inflation by spreading the currency to more holders to meet the increased demand.
New stablecoin regulations in Hong Kong are attracting a host of banks and financial institutions that want to issue yuan-backed stablecoins.
A senior adviser to Russian President Vladimir Putin recently accused the US government of using stablecoins to devalue its debt.
Magazine: Stablecoins in Japan and China, India mulls crypto tax changes: Asia Express