Tether, the dominant force behind USDT, the world’s most traded stablecoin, is strategically maneuvering to broaden its influence within the United States market. This expansion comes as the regulatory environment has undergone significant transformations, particularly influenced by policies enacted during the previous administration.
The recent implementation of the GENIUS Act, which provides a novel legal structure for stablecoins and entities issuing cryptocurrency pegged to the US dollar, is seen as a favorable opportunity by Tether. They are poised to take advantage of this evolving landscape.
Tether’s Return to the US Spotlight
Paolo Ardoino, CEO of Tether, recently shared in an interview with Bloomberg the company’s intent to introduce a new token, named USAT, specifically engineered to adhere to US regulations. A cornerstone of this strategy is a partnership with Rumble, a rapidly expanding video platform boasting a considerable user base.
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Tether’s commitment to Rumble is substantial, holding a 48% ownership stake after a significant $775 million investment in 2024. Ardoino emphasized the importance of Rumble’s 51 million monthly active users, stating, “That’s a substantial audience when compared to others operating in the United States.”
The US stablecoin landscape includes players such as Circle (CRCL), the issuer of USD Coin (USDC), the second-largest dollar-backed digital currency, alongside a growing number of new stablecoin projects.
The previous administration made the advancement of privately issued stablecoins a priority, particularly through the GENIUS Act, designed to foster a beneficial setting for issuers.
Tether, which previously faced regulatory challenges, including a $41 million penalty relating to reserve representations, is making a determined push to solidify its presence in the US market once again.
Targeting a $500 Billion Company Value
Having reported a $4.9 billion profit in the second quarter, Tether has been strategically allocating its capital into highly liquid assets, notably US Treasury bonds, generating substantial interest revenue.
The company’s recent endeavors also reach into a wide range of sectors, including artificial intelligence (AI), energy resources, and raw materials. Ardoino specified that Rumble’s upcoming digital wallet will be essential not just for USAT, but also for Tether’s tokenized gold offering.
Chris Pavlovski, the CEO of Rumble, expressed similar views to Ardoino, noting that the collaboration reflects the values of free expression and decentralized finance (DeFi).
“Rumble stands for free speech, just as Tether’s digital currency and the decentralized web are representative of genuine freedom,” he stated, emphasizing the shared principles uniting the two businesses.
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Furthermore, Tether is attempting to raise up to $20 billion by offering a 3% equity stake, which could result in the company being valued at approximately $500 billion. Ardoino indicated this valuation to be advantageous, even without disclosing the exact calculations used.
Should this fundraising be successful, Tether plans to allocate a portion of the funds towards creating an artificial intelligence platform designed to run on inexpensive smartphones in developing economies, primarily in Africa and South America.
Tether’s CEO also mentioned plans to develop an offline, AI-driven language translation application as part of this overarching strategy.
Featured image generated with DALL-E, chart provided by TradingView.com