Tether’s US-Focused Stablecoin USAT Surges 540% in April, Still Trails Rivals

May 28, 2026 — Tether’s U.S.-focused stablecoin USAT saw its market capitalization jump over 500% in April to $140.8 million, though it remains far behind competitors like Circle’s USDC and PayPal’s PYUSD, according to the token’s latest reserve report.

Immediate Details & Direct Quotes

The circulating supply of USAT reached $140.8 million as of April 30, up from $22 million in March—a 540% monthly growth rate. Reserve assets backing the token increased to $141.2 million from $22.2 million over the same period, the Deloitte-signed report showed.

Bo Hines, CEO of Tether USAT, attributed the surge to “increased use across institutional treasury operations, settlement flows, and regulated dollar liquidity management.” He added that “the broader policy environment is moving in the right direction, and USAT is already operating in the kind of structure that institutions are asking for.”

Launched in January, USAT is issued by Anchorage Digital, the federally chartered crypto bank partnering with Tether for its U.S. expansion. The stablecoin market has surpassed $300 billion in total value as these digital dollars become more embedded in global finance.

Market Context & Reaction

Despite its explosive growth, USAT remains a fraction of the size of its main rivals targeting U.S. customers. Circle’s USDC commands approximately $76 billion in market capitalization, while PayPal’s PYUSD—issued by Paxos—stands at roughly $5.5 billion. Ripple’s RLUSD, which launched in December 2024, has grown to about $1.7 billion.

For comparison, Tether’s flagship stablecoin USDT remains the largest dollar-pegged token globally with a market capitalization near $189 billion. USDT is regulated in El Salvador and widely used in emerging markets for payments and savings.

The GENIUS Act, which established a federal framework for dollar-backed stablecoins, has further boosted the sector, opening pathways for banks, fintech firms, and crypto companies to offer regulated digital dollars in the United States.

Background & Historical Context

USAT entered the market in January through Tether’s partnership with Anchorage Digital, a federally chartered crypto bank that provides the regulatory infrastructure for the token’s U.S. operations. This move represented Tether’s strategic push into the American stablecoin market, which has become increasingly competitive.

The broader stablecoin sector has grown past $300 billion in value, becoming deeply integrated into payment rails and institutional finance. Regulatory developments like the GENIUS Act have provided clearer frameworks for dollar-backed stablecoin issuance, encouraging wider adoption.

While USAT’s growth trajectory shows momentum from $22 million to $140.8 million in just one month, the token still faces a significant gap compared to established players who have built larger market shares through earlier market entry and broader distribution networks.

What This Means

The 540% monthly growth signals growing institutional appetite for regulated dollar stablecoins within the U.S. market, even as competition intensifies among major issuers. Tether’s USAT is positioning itself to capture demand from treasury operations and settlement flows that require federal regulatory compliance.

For traders and investors, USAT’s rapid expansion suggests increasing institutional adoption of U.S.-based stablecoin solutions, though the token’s long-term viability will depend on building liquidity and trust comparable to rivals like USDC and PYUSD.

The ongoing development of regulatory frameworks and partnerships with federally chartered institutions indicates that the stablecoin market is maturing, with compliance becoming a key differentiator for market participants seeking reliable digital dollar exposure.

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