The world’s largest stablecoin issuer is launching a dollar-backed token, dubbed USAT, alongside a crypto wallet integration with video‑streaming challenger Rumble.
The move marks a sharp reversal from Tether’s earlier retreat. The company left the U.S. after paying a $41 million penalty tied to questions about its reserves. Now, under the guidance of former White House crypto advisor Bo Hines, Tether is positioning itself to take advantage of fresh regulatory clarity introduced under the Trump administration’s Genius Act. The legislation gives private firms the green light to issue stablecoins backed by dollars.
A Bet on Rumble’s Audience
Central to the rollout is Rumble, the video platform often branded as an alternative to YouTube. Tether holds nearly half of the company after a $775 million investment last year, and CEO Paolo Ardoino sees its 51 million monthly active users as fertile ground for adoption. The new Rumble Wallet will give those users access not only to USAT but also to other stablecoins and tokenized assets.
For Ardoino, the partnership is more than payments. He described Rumble as a “hub” for expanding Tether’s wider product line, including its gold‑backed token. Rumble’s CEO Chris Pavlovski echoed that sentiment, calling the wallet a blend of financial and digital freedom – matching the platform’s ethos of open expression.
Stablecoin Wars Heat Up
The U.S. stablecoin market is dominated today by Circle’s USDC, and Tether’s re‑entry raises the stakes. While USDC has enjoyed regulatory comfort and institutional adoption, Tether still commands the largest global market share. The introduction of USAT is a direct challenge designed to win back ground in a market it once abandoned.
Backed by Record Profits
Tether’s timing is helped by its financial strength. The company earned nearly $5 billion in profit in Q2 2024 from investments in U.S. Treasuries and similar reserves, and has been using those gains to expand across industries ranging from AI to energy. That same firepower is now fueling its American comeback.
By tying its next chapter to Rumble’s growing platform, Tether is betting that stablecoins can spread through mainstream apps rather than just crypto‑native exchanges. If the strategy works, USAT could become the cornerstone of a broader push to challenge USDC on its home turf.