SS #70 - Tether Launches USAT as the Federal Era of Stablecoins Begins

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Good morning!

Good morning. One of the biggest names in the stablecoin space just made a definitive move into the United States. Tether has officially launched USAT, a federally regulated stablecoin built specifically to align with the recently enacted GENIUS Act. This marks a strategic pivot for the company: while USDT will continue to drive global liquidity and emerging markets, USAT is positioned to capture the increasingly regulated U.S. institutional landscape.

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In Today's Edition:

• Headline: Tether Launches USAT as the Federal Era of Stablecoins Begins

• Quick Bites: UAE’s Central Bank Has Approved a USD-Backed Stablecoin

• Yield of the Week: 80% APY on Yuzu

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HEADLINE

State of play: Tether has officially entered the U.S. domestic market with the launch of USAT, a federally regulated stablecoin designed to comply with the newly enacted GENIUS Act.

• Tether is splitting its empire, keeping USDT for global liquidity and emerging markets while using USAT to capture the strictly regulated U.S. institutional landscape.

• To ensure compliance, USA₮ is issued by Anchorage Digital Bank (a federally chartered bank) with Cantor Fitzgerald serving as the reserve custodian and primary dealer.

• The token is designed specifically for "mass TradFi adoption," aiming to provide banks and broker-dealers a compliant vehicle for on-chain settlement.

What’s Next: Expect a rapid "onshoring" of stablecoin liquidity as major U.S. exchanges and broker-dealers integrate USAT for institutional trading. This launch will likely trigger a competitive race among other issuers to secure federal charters or bank partnerships to remain compliant under the GENIUS Act.

Why it Matters: This marks the end of Tether’s "offshore-only" era and signals that the U.S. is now open for regulated stablecoin business. It bridges the gap between massive crypto liquidity and the strict requirements of Wall Street, potentially moving trillions in traditional settlement onto the blockchain.

Our Take: Tether is successfully pivoting from a regulatory target to a regulated player. By leveraging Anchorage’s federal charter, they’ve cleared the biggest hurdle for U.S. institutional adoption. The strategic split between USAT (domestic) and USDT (global) allows them to dominate both the regulated West and the emerging "rest," solidifying their lead in the stablecoin wars.

QUICK BITES

• Fidelity to launch dollar-backed stablecoin FIDD.

• UAE's central bank has approved a USD-backed stablecoin.

• Japan's regulator seeks public input on bonds eligible for stablecoin reserves.

• Ripple debuts treasury platform combining cash and digital asset management.

• Tether is buying up to $1B of gold per month and storing it in a 'James Bond' bunker.

• Mizuho upgrades Circle shares outlook citing Polymarket’s use of USDC for settlement.

• Standard Chartered warns stablecoins could drain $500B from U.S. bank deposits by 2028.

YIELD OF THE WEEK

Midas mAPOLLO: 12.07% APY

• mAPOLLO strategy tracks a curated basket of market-neutral stablecoin yields across various blockchain ecosystems.

• Apollo Crypto oversees the portfolio in a Risk Manager capacity to maintain strategy integrity.

• Returns are automatically reinvested into the token price to simplify growth for holders.

Yuzu yzPP: 80% APY

• Participants in the yzPP tranche take on first-loss risk in exchange for enhanced yields partially backed by the Reserve Fund.

• The total return consists of a base yield matched to syzUSD plus a variable premium budget that the protocol adjusts daily.

• Based on a 110% collateral ratio, the projected yield for yzPP is expected to more than double the returns of syzUSD.

Accountable Asia Credit Yield Vault: 9.25% APY

• SharpByte Capital manages a vault on YieldApp that directs USDC into a mix of credit-linked tokens and liquidity pools on the Monad network.

• Revenue is generated through a combination of interest from Asian corporate and government debt, AMM trading fees, and protocol-specific incentives.

• The fund actively shifts capital between senior and junior tranches to optimize credit-driven returns while protecting against potential drawdowns.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.