Tether Eyes US Market Return

The issuer of the world's most widely-used stablecoin is preparing to launch operations in the United States for the first time since being barred from New York markets four years ago.

Tether CEO Paolo Ardoino told Bloomberg Television on Wednesday that his company is developing plans to serve US institutional clients following President Trump's approval of new stablecoin regulations last week. The El Salvador-based firm would target banks and trading firms rather than retail users, Ardoino said.

Trump's signing of the Genius Act on July 18 established federal oversight for stablecoins - digital tokens pegged to traditional currencies like the dollar. The legislation opens doors for mainstream financial institutions to both use and issue these tokens for payments and settlements.

For Tether, the regulatory clarity represents an opportunity to challenge Circle's dominance in American markets. Circle's USDC token controls the domestic stablecoin sector, helping drive the company's stock up more than 500% since its June public offering.

But Tether brings significant scale to any US competition. Its USDT token has $162 billion outstanding compared to Circle's $64.7 billion, making it the largest stablecoin globally and the most-traded crypto asset by volume.

The company's US ambitions face complications from its troubled regulatory history. Tether paid $60 million to settle federal and New York state charges in 2021 over claims it misrepresented its dollar reserves. The settlement banned Tether from operating in New York.

Long-standing questions about Tether's transparency persist, with critics noting the company has never completed a full audit despite years of promises. Ardoino acknowledged recent discussions with auditing firms but provided no timeline for completing reviews.

While Circle went public to fuel growth, Tether plans to remain private. "In general we are not interested in becoming a public company," Ardoino said.

The company continues expanding in developing markets, where it sees competitive advantages over rivals. Ardoino attended Trump's White House signing ceremony alongside other crypto executives last week.