Details Emerge About Tether’s New Stablecoin to Hit the Market – CEO Makes Statement

According to Bloomberg, Tether, the world's largest stablecoin issuer, will collaborate with video platform Rumble to launch its newly developed dollar-backed digital asset, $USAT, in the United States.

Tether CEO Paolo Ardoino announced plans to increase Rumble's market share in the US by targeting its 51 million monthly active users. Rumble will integrate a new crypto wallet into its YouTube-competitive platform, offering users access to $USAT and other stablecoins.

Tether acquired a 48% stake in Rumble with a $775 million investment in 2024. “Rumble's current user base is higher than many of our competitors in the US. This presents a huge opportunity for rapid growth for the company,” Ardoino said.

Tether's biggest competitor in the US stablecoin market is USDC, issued by Circle. President Donald Trump's administration has created a legal framework for privately issued dollar-backed stablecoins with the Genius Act.

Years ago, Tether withdrew from the US after allegedly making misleading statements about its reserves, paying a $41 million fine. However, this time, the company is spearheading its new US campaign under the leadership of former White House crypto advisor Bo Hines.

El Salvador-based Tether generates substantial income by holding its reserves in cash-like assets like U.S. Treasury bonds. The company reported $4.9 billion in profit in the second quarter of 2024. With these proceeds, it continues to invest in various sectors, including artificial intelligence, energy, and commodities.

Ardoino argued that the Rumble partnership would be a strategic hub not only for $USAT but also for Tether's tokenized gold product. Rumble CEO Chris Pavlovski said in a statement, “Rumble represents freedom of expression; Tether's cryptocurrencies and the decentralized internet also represent true freedom. Rumble Wallet will be a product that combines these principles.”

*This is not investment advice.