24/7 Cryptocurrency News

Tether Goes Head-to-Head with Trump’s Stablecoin USD1: Why It’s Good News for Crypto

Tether plans to launch a new US-focused stablecoin by 2025 to rival Trump-backed USD1, entering a competitive market with strong backing.
Published by
Tether Goes Head-to-Head with Trump’s Stablecoin USD1: Why It’s Good News for Crypto

Highlights

  • Tether plans to launch US-based stablecoin by end of 2025.
  • Move positions company to compete directly with Trump family's USD1 token.
  • The stablecoin issuer holds nearly $120 billion in US Treasuries backing its reserves.

Tether, the world’s largest stablecoin issuer with over $143 billion in circulation, is preparing to enter the US domestic market with a new dollar-pegged stablecoin. With this new launch, Tether plans to compete directly with key players in the US stablecoin market like the Trump family-backed World Liberty Financial and its USD1 coin.

Advertisement

Tether to compete with USD1

CEO Paolo Ardoino revealed these plans during a CNBC interview at the Token2049 conference in Dubai. According to the CEO, the stablecoin will launch by the end of 2025. He also mentioned that the company’s US-focused stablecoin would be different from its international USDT offering. Its launch timeline is dependent on “the timeline of the final legislation.”

The stablecoin landscape is becoming increasingly competitive as Tether prepares to challenge World Liberty Financial’s USD1, a stablecoin initiative backed by Eric Trump and Donald Trump Jr. Eric Trump has been quite vocal about crypto and even stated that crypto could replace SWIFT payment system.

Tether’s planned entry into the US domestic market is a major move as the regulatory environment is changing under the current administration.

World Liberty Financial has already announced its USD1 token, which promises to be fully backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. The token is initially planned for launch on Ethereum and Binance Smart Chain.

Tether’s US market entry follows Ardoino’s increased presence in Washington, where he has engaged in meetings with lawmakers and participated in crypto industry events. This approach, characterized by some as a charm offensive, includes a private lunch with Senator Bill Hagerty and various networking activities with policy influencers.

Tether mentioned legal cooperation as a central element of its messaging to US policymakers. “There is no company… even in the traditional financial system, that has such a breadth of collaboration with law enforcement,” Ardoino stated during his interview.

Advertisement

Why the firm’s US launch could be good news for crypto

Tether’s goal of entering the US market may create a more competitive cryptocurrency ecosystem, more transparency, and tie into reputable financial support. Joining Ardoino pointed out the strength of the company’s financials and operational transparency as an advantage, creating possible new industry standards.

The stablecoin issuer has made notable developments on previous issues revolving around reserves. Per Tether’s most recent attestation report, the company reported it now has approximately $120B in US Treasuries; and the total assets amount at least to $149.27B with $143.68B in liabilities – creating at least a $5.6B surplus.

Tether’s partnership with Cantor Fitzgerald to oversee its Treasuries gives the company some institutional credibility. Ardoino was careful to avoid a potential conflict of interest stating that he does not talk to Secretary Lutnick directly because of “proper walls,” but did say Tether has “great relationships with many people in the US and as well now in Washington.”

The company’s quarterly growth metrics also show increasing adoption, with approximately 46 million new USDT wallets created during the most recent reporting period. This is a 13% increase from the previous quarter. This is an indication of growing user confidence despite past regulatory challenges. This includes an $18.5 million settlement with the New York attorney general in 2021 over allegations regarding misrepresentations about its reserves.

As per Ardoino’s recent tweet, he expects a 10x projection for Tether in the next five years. He mentioned that Tether products could reach almost 3 billion people. The stablecoin’s growth could also be good news for crypto as 37% of the global users use USDT for savings, with an average daily volume of 30 billion.

Share
Vignesh Karunanidhi

Vignesh Karunanidhi is a seasoned crypto journalist with nearly 7 years of experience in the cryptocurrency industry. He has contributed to numerous publications, including WatcherGuru, BeInCrypto, Milkroad, and authored over 10,000 articles

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

World Liberty Financial Discloses Reason for Blacklisting 272 Wallets

World Liberty Financial (WLFI) has confirmed that it blacklisted 272 wallets and explained why it…

September 6, 2025
  • 24/7 Cryptocurrency News

September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data

Traders are beginning to price in the possibility of a 50 basis points (bps) Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor Spotlights Strategy’s Performance Following S&P 500 Snub

Michael Saylor highlighted Strategy’s outperformance after the company was excluded from the S&P 500. The…

September 6, 2025
  • 24/7 Cryptocurrency News

Donald Trump Shortlists Hassett, Warsh, and Waller for Fed Chair

U.S. President Donald Trump has revealed his shortlist of candidates who could potentially replace Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025