From Stablecoin to Bitcoin Giant: How Tether’s USD₮ Is Reshaping Global Finance

Tether is formally entering the U.S. market with USA₮, a new dollar-backed stablecoin designed to comply with the GENIUS Act by late 2025. While its global USDT token exceeds $169 billion in market cap, USA₮ will serve U.S. businesses and institutions directly. At the same time, Tether is deepening its Bitcoin strategy, holding over 100,000 BTC, investing $2 billion in mining, and rolling out USDT on the RGB protocol to make Bitcoin-based stablecoin transfers faster, cheaper, and more private. Together, these moves position Tether as both a U.S. market entrant and a major player bridging crypto with U.S. Treasuries and global finance.

• USA₮ launch: U.S.-regulated stablecoin, issued via Anchorage Digital with Cantor Fitzgerald managing reserves, expected by end of 2025.
• Market impact: USDT continues global dominance, while USA₮ provides a “clean-skin” option for U.S. institutional adoption.
• Bitcoin strategy: Over 100,000 BTC held, 15% of profits allocated, $2B invested in mining, and integration with the RGB protocol.
• Treasury exposure: $127B in U.S. debt holdings, ranking Tether alongside sovereign nations like Saudi Arabia and above South Korea.
• Outlook: Dual focus on Bitcoin and Treasuries may draw heightened regulatory scrutiny as Tether bridges crypto and traditional finance.

In early September Tether announced the launch of USA₮, a new U.S.-regulated dollar-backed stablecoin designed specifically for American businesses and institutions.

The company appointed Bo Hines, former head of the White House Crypto Council, as CEO of its newly established U.S. division, which will be headquartered in Charlotte, North Carolina.

The launch of USA₮ is a smart strategic move as it will comply from the outset with the recently enacted GENIUS Act and is expected to launch by the end of 2025. Federally chartered Anchorage Digital will serve as the token issuer and Cantor Fitzgerald will manage the reserves. Rather than attempting to rework its existing US dollar (USDT) into full compliance with the GENIUS Act, the launch of USA₮ means Tether will have a ‘clean-skin’ currency ready for US institutional use – thereby likely bypassing the competitive legal challenges it would have faced had it tried to simply reposition USDT.

Thus, this strategic move represents Tether’s ‘formal’ entry into the U.S. market, complementing its existing USDT token that has achieved a market capitalization exceeding $169 billion and serves nearly 500 million users globally. The initiative positions USAT as a domestic solution for American markets while maintaining USDT’s role in international remittances and emerging market access

Tether’s Expanding Bitcoin Reserves & Global Influence

Further to Tether’s market relevance, a recent episode of BitGo’s recent Digital Asset Report highlighted a new step recently in Tether’s growing Bitcoin strategy. The world’s largest stablecoin issuer announced that USDT will launch on the RGB protocol, a Bitcoin-based smart contract system integrated with the Lightning Network. This development is set to make stablecoin transactions faster, cheaper, and more private, while marking the gradual phase-out of older blockchains.

The move comes as Tether deepens its position in Bitcoin itself. The company now holds more than 100,000 BTC and has invested $2 billion in mining infrastructure, underscoring its ambition to become one of the largest Bitcoin miners by the end of 2025.

Since the first quarter of 2023, Tether has allocated up to 15% of its net realized operating profits into Bitcoin, a model built on realized gains rather than speculative paper profits. This approach reflects a more sustainable, risk-managed strategy compared with many institutional investors.

In addition to direct allocations, Tether maintains custody of its own reserves, reinforcing the principle of “not your keys, not your Bitcoin.” By the end of 2024, the company had generated $13 billion in net profit and held around 83,758 BTC, valued at approximately $7.8 billion at the time.

By mid-2025, its quarterly attestation showed net profits climbing to $4.9 billion, with Bitcoin reserves crossing the 100,000 BTC mark. Alongside this, Tether’s U.S. Treasury bill portfolio swelled to $105.5 billion, and when combined with repos and money-market funds, its total Treasury exposure reached $127 billion. This level of investment places Tether ahead of sovereign holders such as South Korea and nearly on par with Saudi Arabia in U.S. debt holdings.

Why the RGB Protocol Matters

The RGB protocol builds on Bitcoin by enabling asset issuance that is scalable, private, and user-controlled. For stablecoins, this innovation delivers three key advantages:

• USDT and Bitcoin can be stored in the same wallet.

• Transfers are possible even in offline conditions.

• Transactions leverage Bitcoin’s security model for added trust.

According to Paolo Ardoino, Tether’s CEO, this launch represents a turning point, making stablecoins more native to Bitcoin’s ecosystem. Beyond payments, RGB could expand into financial applications built on Bitcoin’s infrastructure, opening new possibilities for DeFi and institutional adoption.

Market Implications

Tether’s dual strategy, splitting reserves between Bitcoin and U.S. Treasuries, has wide-ranging implications across global markets. Its Bitcoin purchases add liquidity and may influence market volatility, while its massive U.S. Treasury exposure places it among the top non-sovereign buyers of U.S. debt. These dynamics could affect bond yields and deepen Tether’s role in global finance.

However, this growing influence is likely to attract regulatory scrutiny. Authorities may examine the quality of Tether’s reserves more closely, particularly as it holds such weight in both cryptocurrency and traditional financial markets.

Outlook: Bridging Two Financial Worlds

Looking ahead, Tether faces critical questions. Will it eventually raise its 15% cap on Bitcoin allocations? How might regulators respond to a private company rivaling sovereign nations in U.S. debt holdings? And could its strategy start shaping not only Bitcoin liquidity but also Treasury yields?

What is clear is that Tether is transforming its identity. No longer simply a stablecoin issuer, it is positioning itself as a bridge between digital assets and traditional finance, embedding Bitcoin deeper into the global financial system.