Tether has unveiled plans for a new US-regulated, dollar-backed stablecoin with former White House crypto adviser Bo Hines taking charge as chief executive of the project. The move underscores Tether’s ambition to strengthen its position in the regulated stablecoin market while aligning with new US policy frameworks.

Bo Hines Steps Into Leadership Role

Bo Hines, who previously served as Executive Director of the White House Crypto Council under President Donald Trump, joined Tether in April as a strategic adviser. He will now lead the newly created US unit responsible for the launch of the stablecoin, named USAT. The decision reflects Tether’s strategy of pairing regulatory alignment with American leadership.

The Charlotte-born executive confirmed that the stablecoin is on track to launch before the end of 2025. “The simultaneous introduction of both the token and CEO reflects Tether’s commitment to delivering a US-regulated dollar-backed stablecoin backed by transparent reserves, strong governance, and American leadership from day one,” the company noted in its statement.

Structure of the New Stablecoin

USAT will complement Tether’s existing token, USDT, which remains the world’s largest stablecoin with about 169 billion dollars in circulation. Unlike USDT, the new token is designed to comply directly with American reserve and regulatory requirements set out in the recently passed GENIUS stablecoin bill.

The token will be issued in partnership with Anchorage Digital, a leading crypto infrastructure firm, while Cantor Fitzgerald is expected to provide additional support. This arrangement is intended to ensure that the new asset meets the highest standards of oversight and reserve transparency.

Tether’s Expanding Role in US Finance

Tether has already become one of the largest holders of US Treasuries, ranking 18th among global debt holders. The company reported profits of 13 billion dollars in 2024 and expects similar results this year. With the USAT launch, Tether aims to deepen its footprint in American financial markets.

“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,” said Tether Group CEO Paolo Ardoino.

He also emphasised that the company has no plans to pursue a public listing, instead focusing on strengthening its stablecoin ecosystem and engaging directly with users and institutions.

Stablecoins as a Policy Issue

The announcement comes at a time when stablecoins have surpassed a global market capitalisation of 270 billion dollars, according to RWA.XYZ. Their role has grown beyond crypto markets into the arena of geopolitics, with the Trump administration treating them as a matter of strategic policy. China and other major economies are also examining their place in global finance.

For Hines, the project represents an opportunity to align regulatory clarity with user adoption. The USAT team will be based in Charlotte, North Carolina, his home state, and will prioritise reducing intermediaries in user transactions while building partnerships with American financial institutions.

“Exchanges are important, but our focus will be reaching people, ensuring we reduce the number of intermediaries between us and our users,” Ardoino said, highlighting the company’s aim to simplify access and broaden adoption.

Looking Ahead

As the global race to issue regulated stablecoins accelerates, Tether’s USAT project could mark a turning point in the competition between private issuers and government-backed initiatives. With Bo Hines at the helm and US institutions in support roles, Tether is positioning itself to ensure that the US dollar maintains its relevance in the digital economy.