Tether’s US Comeback: New Stablecoin & $500B Valuation Goal

The landscape for stablecoins in the United States has fundamentally shifted with the Trump administration’s prioritization of the sector, culminating in the GENIUS Act. This new regulatory framework provides the clarity that Tether needs to re-establish a formal foothold. In a recent interview with Bloomberg, Tether CEO Paolo Ardoino confirmed the firm’s plan to launch USAT, a new token engineered from the ground up to comply with U.S. regulations. This move marks a pivotal strategic shift for Tether, which previously faced significant scrutiny, including a $41 million fine for alleged misrepresentations of its reserves.

The GENIUS Act is designed to create a supportive environment for private issuers of dollar-pegged cryptocurrencies, directly enabling Tether’s ambitions. This regulatory tailwind arrives as the U.S. stablecoin market continues to evolve, with established players like Circle (issuer of USDC) and a host of new entrants vying for position. For Tether, USAT represents more than just a new product; it is the key to unlocking the world’s largest financial market under a newly defined set of rules.

Central to Tether’s U.S. strategy is its deep partnership with the video platform Rumble. Following a substantial $775 million investment in 2024, Tether now holds a commanding 48% stake in the company. Ardoino has emphasized the immense value of Rumble’s 51 million monthly active users, stating, “That is already a huge amount of users if you compare to what the competition has now in the United States.” This existing user base provides a ready-made channel for distribution and adoption that few competitors can match.

The synergy extends beyond mere user numbers. Rumble’s upcoming crypto wallet is slated to play a crucial role, serving as a primary vehicle not only for the new USAT but also for Tether’s tokenized gold product. Rumble CEO Chris Pavlovski has framed the partnership as a union of shared principles, noting that “Rumble represents free speech just as Tether’s cryptocurrency and a decentralized internet represent true liberty.” This alignment on the ideals of free speech and decentralized finance (DeFi) underpins a strategic alliance that is as much philosophical as it is financial.

Tether’s aggressive expansion is backed by formidable financial strength. The company reported a staggering $4.9 billion profit in the second quarter of 2024, capital it has strategically deployed into cash-like assets, including US Treasuries, to generate significant interest income. This robust profitability forms the foundation for its most audacious goal yet: a fundraising effort to secure up to $20 billion in exchange for a mere 3% stake, which would value the entire company at approximately $500 billion.

Ardoino has described this potential valuation as a “bargain,” though detailed calculations were not provided. Should this effort succeed, the capital is earmarked for ambitious new ventures, including the development of an artificial intelligence platform designed to function on low-cost smartphones in emerging markets across Africa and South America. This initiative also includes the creation of an offline, AI-powered language translation application, signaling Tether’s ambition to expand far beyond its core stablecoin business into the realms of AI, energy, and commodities.