Tether’s US dollar stablecoin for the US market, USAT, saw explosive growth in April, with its supply in circulation reaching $140.8 million by April 30, up from $22 million in March. According to Tether’s latest reserve attestation, signed and released by Deloitte on Thursday, this means USAT’s supply jumped by 540 percent in just one month. Over the same period, the reserves backing USAT also scaled rapidly, climbing from $22.2 million to $141.2 million.
Behind USAT’s rapid ascent
USAT CEO Bo Hines attributed this sharp uptick to rising use among institutional treasury operations, payment flows, and demand for regulated dollar liquidity. Hines also noted the generally favorable policy environment, suggesting USAT already operates within the framework that institutions actively seek.
Bo Hines points to growing institutional investment and regulated dollar supply demand as key drivers of USAT’s growth, emphasizing that USAT “operates in the structure institutions want and ensures their security.”
The stablecoin market overall has now crossed the $300 billion threshold, further embedding itself in global financial and payment systems. With the introduction of the GENIUS Act in the US—which outlines a legal framework for dollar-backed stablecoins—banks, fintech companies, and crypto firms now have regulated pathways for digital dollar access.
Competitive landscape and current sector status
Tether’s new digital asset, USAT, launched in January in partnership with Anchorage Digital, a US federally chartered bank specializing in digital assets. Through USAT, Tether aims to deepen its presence in the US market. Meanwhile, the company’s flagship stablecoin, USDT, continues to dominate globally with a market capitalization approaching $189 billion. USDT is officially regulated in El Salvador and widely used in developing economies for payments, savings, and transactions.
Despite the notable leap in April, USAT still trails behind US-based rivals. Circle’s USDC maintains a strong lead with a market cap near $76 billion, while the Paxos-issued stablecoin stands at $5.5 billion. Another major US-based entrant, launched in December 2024, has already reached $1.7 billion in circulation.
Mini glossary: Anchorage Digital is a US-based, federally licensed crypto asset bank. It offers institutional solutions for the custody, transfer, and management of digital assets. Thanks to its partnership with Tether, it can issue regulated stablecoins in the US.
| Stablecoin | Market Cap | Launch Date |
|---|---|---|
| USAT | $140.8 million | January 2024 |
| USDT | $189 billion | 2014 |
| USDC | $76 billion | 2018 |
| Paxos Stablecoin | $5.5 billion | 2018 |
| December 2024 competitor | $1.7 billion | December 2024 |
US regulation and the sector’s outlook
Clarification of the federal regulatory framework for dollar-backed stablecoins has opened the door for new players in the US market. Many banks and tech companies are now preparing their own compliant digital dollar solutions. The rapid surge in USAT’s supply signals a sector that is poised to become even more competitive and diverse in the coming months.
