Tether Partners with Rumble to Launch USAT
Tether has announced a strategic partnership with Rumble, the video streaming platform, to enhance the distribution of its newly introduced stablecoin, USAT, which is regulated for the U.S. market. Paolo Ardoino, Tether’s CEO, shared the news during a discussion panel at the recent Token2049 event in Singapore, indicating that this collaboration is part of Tether’s recommitment to the American cryptocurrency landscape.
Integration of Cryptocurrency Wallet
The upcoming integration will see Rumble launch a cryptocurrency wallet designed with Tether’s underlying technology, thereby enabling approximately 51 million active users of the platform to seamlessly access USAT, the digital currency that Tether has rolled out. This wallet is anticipated to be available later this year, showcasing Rumble’s willingness to venture into digital currency.
Strategic Positioning in the Market
This partnership speaks volumes about Tether’s tactics to gain traction in a competitive environment, particularly given that the U.S. stablecoin market is currently dominated by Circle’s USDC. By merging with a popular content platform like Rumble, Tether aims to differentiate its USAT offering from its rivals.
Investment and Future Prospects
This initiative coincides with Tether’s significant investment of $775 million in Rumble, which resulted in the cryptocurrency issuer acquiring a near 50% stake in the platform. According to Ardoino, the new wallet will not only promote USAT but also facilitate other products, including Tether’s tokenized gold, thus positioning Rumble as a pivotal player in Tether’s strategy for expansion in the stablecoin arena.
Regulatory Landscape and Market Entry
Tether’s move into the U.S. market comes after a lengthy hiatus influenced by regulatory challenges, most notably a $41 million settlement in 2021. However, the launch of USAT in September marked Tether’s return to the American market, backed by new leadership, including Bo Hines, a former advisor at the White House on cryptocurrency matters.
Compliance with Federal Legislation
USAT is structured to adhere to the GENIUS Act, federal legislation that permits the issuance of dollar-backed stablecoins within defined regulatory frameworks. This legislative environment is viewed as an opportunity for Tether to compete more fiercely against established players like Circle, World Liberty Financial, and Ripple in the increasingly important race for dominance in the U.S. digital dollar market.
