Tether Eyes $500B Valuation with USAT Launch in U.S. Market

• Tether launches USAT, aiming for a $500B valuation and stronger U.S. market presence.
• The company leverages $10B profit and $122B in Treasuries to expand beyond stablecoins.
• Despite past controversies, Tether works with authorities to freeze $4B in illicit USDT.

Tether is making a move in the U.S. stablecoin market, launching a new digital dollar called USAT. CEO Paolo Ardoino said the expansion positions the company for a potential $500 billion valuation. Speaking in San Salvador, Ardoino emphasized that Tether aims to play a larger role if traditional financial systems face stress.

“We have this huge financial arm, and we can really create a positive impact,” he said, highlighting the firm’s $10 billion profit in 2025 and $122 billion held in U.S. Treasuries. Tether is also expanding beyond stablecoins into crypto infrastructure, AI, energy, and media

Strategic U.S. Expansion Amid Regulatory Shifts

Tether moved its global headquarters to San Salvador but is now focusing heavily on expanding in the U.S. It has support from allies in the Trump administration, including Commerce Secretary Howard Lutnick. Under Biden, the company faced heavy scrutiny, and both USDT and Bitfinex were banned from operating in New York. 

However, the current environment is much more favorable. Also, lawmakers have fast-tracked rules to encourage stablecoins, backed by Treasury Secretary Scott Bessent’s point that demand for dollar-linked coins can help lower U.S. borrowing costs. As a result, Tether’s U.S. expansion aligns well with these policy changes, thereby promoting stablecoin use.

Financial Strength and Controversies

Tether made over $10 billion in profit last year with just 300 employees. Besides, it manages more than 140 investments worldwide, putting its money to work strategically. Critics point out that the coin remains popular in illegal markets, including Iran, where USDT was used for roughly $1 billion in IRGC transactions from 2023 to 2025. 

“Tether takes fraud, consumer harm, and the misuse of USDT extremely seriously,” the company said. The firm has frozen about $4 billion in USDT at law enforcement requests, almost half of it at the U.S. government’s direction. As a result, Tether presents itself as both compliant and ambitious on the global stage.

Related: Tether Reveals Q4 Attestation: $10B in Profit and $6.3B in Excess Reserves