Tether Now Has Two Stablecoins; USAT Targets the U.S. Market While USDT Remains Global

Tether, the company behind the world's largest stablecoin, is facing a problem that few people notice. Its flagship token, USDT, which has a market value of about $180 billion according to CoinGecko, does not comply with the new regulatory frameworks in the United States.

According to Mihan Blockchain, instead of changing its giant to comply with these regulations, Tether made a smarter move by building a second stablecoin from scratch that is exclusively designed for the United States. Today, this new token took a step forward that shows how serious Tether is about it.

The USAT token (U.S. compliant stablecoin) has recently expanded on a new blockchain. On the surface, this is just a technical detail, but behind it lies a massive strategy, namely the "Two-Coin" approach.

What happened to USAT?

The USAT token was launched on the Celo network (a network specifically built for stablecoin payments). This event makes Celo the second blockchain to host this token, following its initial launch on the Ethereum network in January 2026. This choice is by no means accidental. According to data from Celo and The Block published on July 29, 2026, the Celo network processes about 28% of all cross-chain transactions of the USDT token, making it a natural distribution channel. Additionally, on Celo, thanks to a native technical feature, USAT can be used directly for transaction fee payments without the need to hold a separate token for gas.

The key point is not just this single integration; it sends a message: Tether is actively building the infrastructure for USAT. This is not a project that was initiated in January and then abandoned; the company is investing in it.

Breaking News: USAₜ is now live on Celo!
The U.S. dollar-backed stablecoin issued by Anchorage@ and supported by Tether@ has been established on Celo (the most widely used network for stablecoin payments) --- along with support for minting, burning, and using it as gas currency from day one.
Why Celo and how to get USAₜ ↓pic.twitter.com/KiIgpoCM7B
--- Celo (@Celo) July 29, 2026

Two-Coin Strategy

To understand the significance of this, one must see the bigger picture. Tether is now playing two separate games with two different products.

Comparison of Tether's Two Stablecoins

This contradiction represents everything. USDT is a giant that dominates global markets, but since its reserves are still not fully aligned with U.S. regulatory standards, it cannot operate as a fully licensed stablecoin within the U.S. USAT is a product born specifically for that market: today, it is small with $185 million compared to $180 billion of USDT, but it is designed from the ground up to be compliant with regulations. Tether decided not to choose between the world and the United States; instead, it kept both.

Who issues USAT and why it matters

There is an aspect of USAT that differentiates it from anything Tether has done before, and this is the most important detail for understanding the significance of this token. USAT is not issued directly by Tether but by Anchorage Digital Bank; the first federally chartered bank in the U.S. dedicated to cryptocurrency assets and operating under the supervision of the Office of the Comptroller of the Currency (OCC). The custody of the reserves is also handled by Cantor Fitzgerald, one of the oldest institutions on Wall Street.

In practice, Tether accepted to place its American stablecoin within the strictest regulatory framework, namely issuance by a regulated bank and custody by a traditional financial power. For a company that has historically faced criticism over the transparency of its reserves, this is a significant shift in position. The leadership of this operation is under Bo Hines, the former director of the White House Crypto Council, who was specifically chosen to speak the language of Washington.

Why Celo?

This integration does not start from scratch; rather, it leverages an ecosystem that has previously been built around stablecoin payments:

• 28%: Celo's share of all cross-chain USDT transactions (based on data from Celo and The Block in July 2026).
• +18 million: The number of global users of the MiniPay wallet (the Opera wallet built on Celo).
• 1 token: The USAT token can be directly used for paying gas fees on the Celo network.

Why now?

This timing is very calculated. The implementing regulations of the GENIUS Act are still evolving, but the path is clear: the U.S. market will reward compliant stablecoins and leave the rest behind. Tether is getting ahead before the legal deadline and is creating the right product before the window of opportunity closes.

This is the calculation that has moved large companies like Fidelity and other heavyweight institutions. The battleground for stablecoins is no longer just about technology or transaction volume; it is about compliance. Anyone who holds the appropriate licenses to operate in the United States will claim the most lucrative market in the world. USDT remains the global king, but on U.S. soil, USAT could be the heir to the throne.

The Bigger Picture for Stablecoin Sector

This move signifies a maturity resonating throughout the industry. For years, Tether thrived by operating in regulatory gray areas and ventured into spaces that were beyond oversight. The creation of USAT is an implicit acknowledgment that this model, on its own, is insufficient for what lies ahead. The market that truly matters, namely the institutional market in the United States, can only be accessed with fully legal credentials.

The strategy of two coins is the clearest summary of this particular moment in the history of stablecoins: one foot in the old world of borderless, permissionless existence where Tether was born and still dominates, and one foot in the new regulated and lawful world where the future is being shaped. The fact that a company most aligned with the culture of "old crypto" is meticulously crafting its compliant version could be the strongest signal of the direction in which the entire sector is moving. Readers who wish to understand the regulations that are changing this market can start with our guide on the GENIUS law. Official information is also still available through Tether's official channels.