Tether's USAT Stablecoin Surges 540% in April

Tether's US-focused stablecoin, USAT, saw an explosive growth of over 540% in April, according to recent data. This significant increase pushed its circulating supply to 140.8 million tokens from just 22 million in March. The reserve assets backing the token also grew at a similar pace, rising to $141,178,400 from $22.2 million in March.

According to an attestation signed by Deloitte and published by issuer Anchorage Digital Bank on May 28, the excess reserves stood at $327,450. The assets backing USAT are split between cash and reverse repurchase agreements backed by US Treasury securities, held in segregated fiduciary trust accounts.

Tether Chief Executive Paolo Ardoino attributed the growth to increasing institutional demand for stablecoins that meet regulatory requirements. 'As stablecoin rules become clearer, institutions are going to look for digital dollars that combine scale, supervised issuance, and transparent reserve reporting,' he said.

USAT was launched in January 2026 as Tether's entry into the US regulatory market, designed to comply with the GENIUS Act. The token is issued by Anchorage Digital Bank, a federally chartered crypto-native bank regulated by the Office of the Comptroller of the Currency (OCC).

Despite its impressive growth, USAT still trails its main competitors in terms of market cap, with Circle's USDC holding around $76 billion and PayPal's PYUSD at approximately $5.5 billion.