The world’s largest crypto company, Tether, is preparing to launch another U.S.-based stablecoin product designed specifically for institutional investors. During an interview with Bloomberg’s Odd Lots podcast, the firm’s CEO, Paolo Ardoino, revealed the plans while boasting about the company’s profitability over the past year.
Why Launch Another Stablecoin?
Support for pending U.S. stablecoin legislation has motivated Tether to consider launching a new U.S.-based stablecoin alternative to its flagship product, USDT. CEO Paolo Ardoino explained:
“We are discussing that opportunity. We need to wait for the final language and to see which bill will pass but definitely we are open to that.”
Tether claims the plan resonates with its strategy of tailoring its products to the distinct economic needs of different regions. For example, in Argentina and other African countries, the focus is on providing a stable alternative to unpredictable local currencies. However, in the U.S., the target would be institutional users with different operational requirements.
According to the interview, the upcoming stablecoin will be designed to meet financial institutions’ unique needs, with enhanced compliance features, improved transparency, and potentially more stable underlying collateral. While details on the launch timeline remain limited, insiders suggest Tether aims to roll out the product later this year.
What This Means for Tether
Interestingly, the proposed move will be a milestone in Tether’s business model, as it has long been known for serving crypto exchanges and retail users. If its plans are executed, the company will target firms like hedge funds, asset managers, and banks exploring blockchain-based settlements and tokenized assets.
The company’s expansion into the U.S. institutional space could also intensify competition with rivals like Circle, which has long used regulatory compliance and transparency as its selling points. Meanwhile, Tether’s recent financial disclosures indicate strong revenue growth, primarily driven by interest income from its substantial reserves in U.S. Treasury bills.
Other Firms Target the U.S. Market
Other crypto firms are keenly eyeing the U.S. market due to a more crypto-friendly U.S. administration, which has resulted in regulatory progress. For instance, Wintermute, one of the largest liquidity providers, plans to expand its operations by opening a New York office and introducing new over-the-counter and derivatives products.
Similarly, Robinhood, which has already seen a surge in crypto trading revenue, plans to expand its product suite and attract a broader base of institutional clients in the U.S.
