U.S.-focused digital dollar reaches $140.8 million circulating supply but trails Circle and PayPal rivals
Tether’s U.S.-focused stablecoin USAT expanded its circulating supply to $140.8 million as of April 30, up from $22 million in March, representing 540% month-over-month growth. The token, launched in January 2026 through a partnership with Anchorage Digital, a federally chartered crypto bank, is now establishing a foothold in the competitive U.S. digital dollar market.
Reserve assets backing USAT grew proportionally, reaching $141.2 million as of April 30 from $22.2 million in March, according to a reserve report signed by Deloitte and published Thursday. The backing ratio remained stable throughout the expansion.
Bo Hines, CEO of Tether USAT, attributed the growth 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.”
The growth reflects momentum in the broader stablecoin market, which has surpassed $300 billion in total value. However, USAT remains a minor player compared to established competitors. Circle’s USDC holds $76 billion in market capitalization, while PayPal and Paxos’ PYUSD commands $5.5 billion. Ripple’s RLUSD, which debuted in December 2024, has reached $1.7 billion.
Tether’s flagship stablecoin USDT dwarfs all competitors with a market capitalization near $189 billion, though USDT is regulated in El Salvador rather than the United States. USAT’s U.S. structure positions it to capture demand from institutions seeking domestically regulated digital dollar infrastructure.
The launch of USAT follows the creation of the GENIUS Act, which established a federal framework allowing banks, fintech firms, and crypto companies to offer regulated digital dollars in the U.S. The regulatory clarity has accelerated product launches across the sector, with multiple stablecoin issuers now competing for institutional adoption under unified federal oversight.
USAT’s rapid early growth signals institutional appetite for regulated dollar tokens operating under domestic banking supervision. The token’s trajectory will test whether regulatory compliance and federally chartered banking partnerships can drive meaningful adoption beyond Tether’s existing USDT user base.
