- Tether expands in the US with USAT while exploring a fundraising round that could value the company near $500 billion.
- Strong profits and $122 billion in US Treasuries support Tether’s push into regulated US financial markets.
- USDC now leads stablecoin transaction volume in 2026 while USDT still holds the largest market capitalization.
Tether is expanding its operations in the United States as the stablecoin sector enters a new regulatory phase. The company recently introduced a new digital dollar designed for the American market. At the same time, Tether is studying fundraising plans that could value the firm near $500 billion. The strategy shows the company’s intention to strengthen its role in regulated financial markets.
Bloomberg reported the development on March 13 and highlighted Tether’s broader expansion plan. The company launched a new stablecoin called USAT earlier this year. In addition, executives are reviewing possible fundraising opportunities tied to the company’s rapid financial growth. The strategy would put Tether in the category of the most valuable private companies in the world.
In the meantime, the stablecoin market is developing with the increased regulation and the entry of new competitors into the market.
USAT Targets the U.S. Institutional Market
Tether introduced USAT on January 27 as a stablecoin designed for the United States financial system. The token operates under the country’s emerging stablecoin regulatory framework. Anchorage Digital Bank issues the asset and ensures regulatory compliance.
Unlike USDT, which circulates across global crypto markets, USAT focuses on domestic institutions and financial platforms. The new token supports companies that need a compliant digital dollar within U.S. financial regulations. As a result, the structure allows smoother interaction with regulators and banking partners.
Meanwhile, Tether is expanding its interactions with the Washington policymakers. The firm has also increased lobbying efforts to regulate the introduction of stablecoins. This is an effort to demonstrate that the company is aimed at consolidating its position in regulated financial markets.
Industry observers believe that regulatory convergence has the potential to promote institutional adoption of stablecoins in the trading, payments and financial services sectors.
Strong Reserves and Profits Drive Expansion
Tether’s expansion plans rest on a strong financial base. The company reported more than $10 billion in profit last year. Interest earned from reserve assets generated a large share of this income.
The firm holds around $122 billion in U.S. Treasury securities. This position places Tether among the largest private holders of American government debt. These reserves provide stability and strong liquidity for future initiatives.
Due to this financial power, the company is considering raising funds that will see its valuation to approximately $500 billion. The interest of investors is high because the stablecoins are gaining a lot of relevance within the global financial infrastructure.
If the fundraising proceeds, Tether could join the world’s most valuable private financial companies.
Stablecoin Market Activity Begins to Shift
While Tether expands, activity in the stablecoin market is also changing. A new report from Mizuho shows that Circle’s USDC has overtaken USDT in transaction volume. This shift marks the first time since 2019 that USDC has led in adjusted stablecoin transactions.
Data from 2026 shows USDC processed about $2.2 trillion in adjusted transactions. During the same period, USDT handled roughly $1.3 trillion. As a result, USDC now represents about 64% of adjusted transaction activity.
Analysts link the growth to broader use cases across digital markets. Platforms such as Polymarket and automated commerce systems increased USDC activity during the year. In February, Circle partnered with Polymarket to move settlement infrastructure to native USDC.
However, USDT still leads the market in total value. The stablecoin holds a market capitalization near $143 billion. In comparison, USDC maintains a market cap around $78 billion.
Following the updated data, Mizuho increased its price target for Circle to $120 from $100. Analysts noted that long-term leadership in stablecoins may depend on real usage rather than overall supply.
