Tether will partner with Anchorage Digital to issue USA₮, a dollar-based stablecoin.
Tether is already the largest issuer of a dollar-based stablecoin, but by piggybacking on Anchorage, it will gain a compliant path to offering digital dollars.
Anchorage Digital is the only federally chartered digital asset bank and thus well-positioned to offer compliant stablecoin services.
Tether notes that it currently has over $160 billion in circulation globally and more than 500 million users accessing “streamlined access to the US dollar.
In general, payment stablecoins based on the dollar are expected to strengthen the greenback as the world’s top reserve currency.
Paolo Ardoino, CEO of Tether, said that “USA₮ is made for America – built to strengthen the dollar, support everyday people, and reinforce the U.S. economy for years to come.”
Nathan McCauley, CEO and Co-Founder of Anchorage Digital, added that “bringing the largest stablecoin ecosystem in the world to the U.S. under federal oversight is exactly what American consumers and institutions need.
Over the years, Tether has struggled with questions about compliance and reserves. This has put its prominence as the top digital dollar issuer at risk. These fears may now be in the rear-view mirror with the Anchorage partnership.