The first quarter 2025 audit showed excess reserves ranging from $7 billion to $5.6 billion. Tether’s reserves are managed by Cantor Fitzgerald, causing scrutiny of potential conflicts. Trump-backed competitor World Liberty Financial is also planning to launch stablecoin.
Due to its market capitalization, Tether, the world’s largest stubcoin issuer, is preparing to launch a US-based stubcoin by the end of 2025 or early 2026.
The move shows a change in the company’s strategy as it aims to be more closely aligned with the US regulatory framework.
International USDT tokens are already dominant in global crypto trading, but the proposed dollar awarded stubcoins are designed to comply with US domestic regulations.
Tether CEO Paolo Ardoino revealed the development during an interview at the Token2049 Conference in Dubai.
He confirmed that we were waiting for results pending US law before completing the launch timeline.
This push coincides with a wider attempt to relocate itself to the US as a compliant, following past controversy over reserve disclosures and regulatory fines.
Lobbying is intensifying in Washington
Tether’s domestic pivot comes as Aldoino increases his presence in Washington, DC.
His recent efforts include a private meeting with lawmakers and a Capitol Hill Ranch with Republican Sen. Bill Hagerty, according to the report.
The company is currently actively lobbying to support proposed laws such as GOP-backed genius laws, including provisions that could benefit foreign issuers such as Tether if they agree to cooperate with US law enforcement.
Ardoino also highlights Tether’s relationship with US institutions, saying that other traditional or encrypted financial institutions do not match the level of collaboration with law enforcement.
The company was once criticised for allowing criminal transactions, but its new strategy focuses on transparency and legal compliance as a means of gaining regulatory approval.
Tether’s headquarters remains in El Salvador, but the company’s efforts to develop stable coins that are domestically compliant reflect an evolving approach to regulatory alignment.
The new token is positioned separately from the Global USDT products tailored to meet certain legal and financial rules within the United States.
Cantor Fitzgerald Link draws scrutiny
As part of its reserve management strategy, Tether owns billions of dollars in the US Treasury Department, managed by Wall Street’s leading company Cantor Fitzgerald.
The company’s first quarter 2025 certification report confirmed that its Treasury holds nearly $120 billion, despite a drop in excess reserves at over $7 billion in December 2024.
Cantor Connection is attracting attention as it is led by a company led by the sons of U.S. Secretary of Commerce, Howard Lutnick.
Aldoino addressed concerns about conflicts of interest and said that there were appropriate “walls” in place and that he would not communicate directly with the secretary.
He also highlights Tether’s healthy capital position, focusing on the excess equity of $7 billion, suggesting that traditional institutions should emulate its model.
In 2021, Tether paid $18.5 million to settle charges by the New York Attorney General over misrepresentation of its preparation.
Since then, we have begun publishing routine proof reports.
Ardoino argued that the company is now more capitalized than many traditional financial companies and is ready to withstand a significant market shock.
Domestic Stablecoin market is hot
Tether’s expansion into the US Stablecoin market comes amid growing political attention.
Trump-backed World Liberty Financial recently announced plans to launch a dollar-backed token, adding to the competition for regulatory legitimacy and market share.
Stablecoins continue to be a hot topic in Washington, but genius acts and other suggestions could set a stage for publishers’ clearer compliance pathways.
Tether’s ability to influence policies could prove important as they try to enter a space where preparations for the 2026 election are likely to intensify.
Tether’s move to issuing a domestically regulated Stablecoin is not only a technical milestone, but also a political statement.
As regulatory conversations gain momentum in Washington, its future may not depend on market control and heavily on legal alignment with US monetary policy.
