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Crypto giant plans U.S. entity as it faces the risk of being blocked if stablecoin legislation moving through Congress is approved

Tether, by far the world’s largest stablecoin issuer, says it plans to create a new stablecoin for the U.S. market this year if Congress passes crypto legislation.

In an interview with The Information, Tether CEO Paolo Ardoino said the company “will move fast” to create a new token once the expected stablecoin legislation passes.

The new stablecoin “is something that can fit the requirements of banks and institutions and the payment processors,” Ardoino said in an interview Friday from the Midtown Manhattan office of Cantor Fitzgerald, which manages Tether’s reserve assets such as U.S. Treasurys.

He said Tether plans to set up a U.S. domestic entity, potentially named Tether USA, this year once the U.S. passes legislation. Tether recently moved its headquarters to El Salvador. He expects the new entity to be regulated at the federal level, depending on legislation. “Given the legislation should pass around August, or like before August [as] we expect, if that’s maintained, then we will move fast,” he said.

“We are in active discussions with regulators to explain the importance of what we do outside of the U.S. and what we could build inside the U.S.,” he said.

The stablecoin legislation moving rapidly through Congress could potentially ban Tether from the U.S. market because the company is not registered in the U.S. Tether has $144 billion in market circulation, more than $80 billion more than the No. 2 stablecoin, run by Circle.

Unlike other more volatile cryptocurrencies, stablecoins are pegged to the dollar and are backed by Treasurys and other safe assets to protect that value. Stablecoins are easy ways to move money abroad and to trade in and out of cryptocurrencies. Tether has come under criticism because drug dealers and terrorist organizations have used its stablecoin, known as tether or USDT. Tether has said it works with law enforcement to freeze assets used by criminals.

Tether hired Cantor Fitzgerald to manage the assets backing its stable coin. The firm was run by Howard Lutnick until he took office as U.S. Commerce Secretary, and the firm continues to manage those assets.

The new stablecoin could be used for payments, digital economy and interbank settlement, Ardoino said. Tether has been investing in its own distribution network—a portfolio of companies that could push for adoption of its stablecoins, such as Rumble, a publicly listed video platform Tether invested $775 million in.

The race to influence stablecoin legislation is heating up as Congress moves quickly to pass a law. On Wednesday, the House Financial Services Committee approved the stablecoin bill, sending it to the House floor. The Senate Finance Committee passed a similar bill last month, and President Donald Trump has said he aims to sign stablecoin legislation by August.

Tether is also exploring pathways for USDT to remain listed on U.S. platforms after legislation is passed. Ardoino said he’s in talks with lawmakers to explain how Tether works and is hopeful that USDT will stay in the secondary markets in the U.S., meaning it will remain listed by U.S. crypto exchanges but will focus on the international market.

To boost liquidity for its new stablecoin, he expects market makers that have access to both stablecoins will be able to help convert one to one between the U.S. stablecoin and USDT.

Tether has no plan to go public and will not need to raise funding for the planned new entity in the U.S., Ardoino said. Circle has filed for an initial public offering.

Ardoino said he can’t meet with Lutnick because of potential conflict of interest, but calls him a “personal friend” and a “great person.”

His current main contact at Cantor is Brandon Lutnick, son of Howard Lutnick. “Great guy, very intelligent. Very grateful that he’s taking the reins of Cantor,” he said.