Tether’s U.S. Stablecoin Just Grew 540% — But Can It Catch USDC?

TLDR

• Tether’s U.S.-focused stablecoin USAT grew 540% in April, rising from $22 million to $140.8 million in circulating supply.
• The growth was driven by institutional use in treasury operations, settlement flows, and regulated dollar liquidity.
• USAT is issued by Anchorage Digital Bank, a federally chartered crypto bank, and is designed to comply with the GENIUS Act.
• Despite the surge, USAT still lags far behind rivals: Circle’s USDC ($76B), PayPal’s PYUSD ($5.5B), and Ripple’s RLUSD ($1.7B).
• Tether’s flagship USDT remains the world’s largest stablecoin at around $189 billion in market cap.

Tether’s U.S.-focused stablecoin USAT posted a 540% month-over-month increase in April, according to an attestation report published Thursday and signed by Deloitte. The token’s circulating supply jumped from $22 million in March to $140.8 million by the end of April.

The report was published by Anchorage Digital Bank, the federally chartered crypto institution that issues USAT on Tether’s behalf. Total reserves backing the token rose to $141.2 million, including a $327,450 surplus over the outstanding supply.

USAT’s reserves are held in segregated fiduciary trust accounts and consist of $13.4 million in cash and $127.7 million in reverse repurchase agreements backed by U.S. Treasury securities.

What Is USAT and Why Does It Exist?

USAT launched in January 2026 as Tether’s push into the U.S. regulatory market. The token is designed to comply with the GENIUS Act, a federal law that created a regulatory framework for dollar-backed stablecoins.

Anchorage Digital Bank, regulated by the Office of the Comptroller of the Currency, was chosen as the issuing partner. It is the first federally chartered crypto-native bank in the United States.

Anchorage’s stablecoin-as-a-service platform has also been used by Western Union, OSL Group, and Falcon Finance.

How USAT Compares to Its Rivals

Despite the strong growth, USAT remains a small player in the U.S. stablecoin market. Circle’s USDC holds a market cap of roughly $76 billion. PayPal’s PYUSD, issued by Paxos, stands at $5.5 billion. Ripple’s RLUSD, which launched in December 2024, has grown to around $1.7 billion.

Tether’s own flagship stablecoin, USDT, remains the largest dollar-pegged token in the world at around $189 billion. USDT is regulated in El Salvador and is widely used in emerging markets for payments and savings.

The broader stablecoin market has now surpassed $300 billion in total value. Industry figures expect growth to continue as U.S. regulations become clearer.

Tether reported $10 billion in net profit in 2025 and over $1 billion in the first quarter of 2026. The firm’s excess reserves hit a record $8.23 billion in Q1 2026, according to a separate attestation by BDO.

Earlier this year, Bo Hines predicted that Tether could become a top 10 U.S. Treasury purchaser as stablecoin adoption grows.

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