Coin Bureau - Tether USAT Stablecoin Explained: How Tether Plans to Beat USDC and Dominate the US Market

"For years, Tether’s USDT has been crypto’s default dollar. It’s fast, it’s liquid, and it’s everywhere in the crypto universe. But as the US locks in new stablecoin regulation, Tether is making a bold pivot by launching a separate, US-focused stablecoin: USAT.

At the same time, Tether is becoming a major gold player, holding billions in precious metals and pushing deeper into commodities and finance.

But what’s the endgame here? Who wins the stablecoin war? What is Tether doing with 140 tons of gold? And how does USAT affect the Tether brand? We dive into all of this and more in today’s video."

~ Coin Bureau

Tether has launched a new US-focused stablecoin called USAT, which is designed to comply with American regulations like the Genius Act while operating alongside its global counterpart, USDT. Unlike the offshore-focused USDT, USAT is issued through the federally regulated Anchorage Digital Bank to provide the transparency and oversight required by US institutions. This move is a direct challenge to Circle's USDC, which has historically dominated the regulated market, even as Tether maintains its lead in total supply.

Beyond stablecoins, Tether has significantly diversified its reserves by accumulating over 140 tons of physical gold and expanding into commodity trade finance, Bitcoin mining, and various venture capital investments. While this growth cements Tether's position as a massive collateral manager, the increasing complexity of its reserves and the reliance on volatile assets like gold and Bitcoin have drawn scrutiny from rating agencies. Ultimately, Tether is attempting to bridge the gap between the unregulated crypto world and traditional finance, though this dual strategy risks creating reputational overlap between its compliant and offshore products.

TIMESTAMPS

0:00 Intro
1:38 What is USAT?
5:05 Tether vs. Circle
10:12 Tether’s Gold
14:26 Tether’s Global Strategy
17:54 The Tether Contradiction

Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=EKC9Zbap_4Q

Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.