Tether, the issuer of the world’s largest stablecoin USDT, is making its move into the U.S. domestic market with the launch of USAT, a dollar-backed token issued by Anchorage Digital Bank.

The launch, announced Tuesday, represents Tether’s first product specifically designed to operate within the U.S. federal stablecoin framework established under the GENIUS Act.

Unlike the globally oriented USDT, USAT is issued directly through Anchorage, a federally chartered, crypto-native bank, bringing its governance under the purview of the Office of the Comptroller of the Currency (OCC).

Stablecoins are cryptocurrencies pegged to assets like fiat currencies or gold. They underpin much of the crypto economy, serving as payment rails and a tool for moving money across borders. Tether's USDT is the largest stablecoin, followed by Circle's (CRCL) USDC.

For years, Circle’s USDC has been the preferred stablecoin for U.S. institutions due to its transparency and domestic alignment. By launching USAT, Tether is taking the fight to Circle’s home turf. Tether aims to leverage its massive financial firepower (reporting billions in quarterly profits) to scale USAT rapidly, aiming for a $1 trillion market cap within five years

The project is led by Bo Hines, former Executive Director of the White House Crypto Council, who serves as CEO of Tether USAT. To bolster institutional appeal, the firms have tapped Cantor Fitzgerald as the designated reserve custodian and primary dealer, aiming to provide bank-grade transparency and asset management from day one.

While Tether’s primary product, USDT, remains the dominant liquidity source in global crypto markets, the firm has faced years of scrutiny regarding its offshore status and reserve transparency. By partnering with Anchorage, Tether is attempting to bridge the gap with U.S. regulators and institutions that require a domestic, made in America alternative.

"USAT offers institutions an additional option: a dollar-backed token made in America,” said Paolo Ardoino, CEO of Tether, in the release. “USDT has proven for more than a decade that digital dollars can deliver trust, transparency, and utility at a global scale. USAT extends that mission by providing a federally regulated product designed for the American market."

At launch, the token will be available on several major trading platforms and payment gateways, including Kraken, OKX, Bybit, Crypto.com, and MoonPay.

Read more: Tether Eyes Fresh Investments to Push USAT Stablecoin to 100M Americans at December Launch