Tether in US regulatory talks over stablecoin as possible ‘settlement currency’

Tether’s chief executive Paolo Ardoino says the stablecoin issuer is in talks with US officials and may even launch a dollar-pegged token tailored for the domestic market only.

Tether (USDT) CEO Paolo Ardoino says the company may consider launching a stablecoin specifically for the U.S. if new rules make the market more competitive.

Speaking to the Financial Times, Ardoino said the company was involved in discussions about U.S. stablecoin rules and that the administration viewed them as “an important instrument for the United States,” though he didn’t elaborate on the details of those discussions.

He also added that if the new rules make U.S. domestic stablecoins competitive, there could be an “interest from Tether to create a domestic stablecoin in the U.S.,” calling it “basically a settlement currency.”

As of press time, Tether doesn’t serve U.S. customers, though it’s one of the most traded cryptocurrency worldwide, with around $144 billion worth of tokens in circulation. The company’s user base now exceeds 400 million, according to Ardoino, who recently said stablecoins are becoming part of a broader “stablecoin multiverse.”

The U.S. is preparing new rules that may require foreign stablecoin issuers to follow local enforcement laws. Ardoino implied that “that is something that we [already] do… voluntarily,” adding that “we are the only ones that on-board the FBI, on-board the U.S. Secret Services.”