Tether CEO reveals plans for a game-changing U.S. stablecoin that could reshape how Americans make payments—and traditional financial giants should be worried.

Tether, the company behind the world’s largest stablecoin USDT, is planning to launch a new U.S.-focused stablecoin by year-end or early 2026, according to CEO Paolo Ardoino in a recent CNBC interview.

“Realistically, it depends on the timeline of the final legislation on stablecoins, but we are looking at [launching the product] by the end of this year or early next year at the fastest,” Ardoino said.

Unlike Tether’s flagship USDT, which primarily serves users in emerging markets with limited access to U.S. dollars, this new offering aims to compete directly with established payment services in the American market.

“In the U.S., you have to create a payment product, something that could be used by institutions, something that can be used as a competitor of PayPal’s CashApp,” Ardoino explained in the interview. “That is what we are aiming for.”

The timing of Tether’s U.S. expansion appears strategic. With Donald Trump returning to the White House, many expect a more favorable regulatory environment for cryptocurrency companies. Ardoino has been increasing Tether’s visibility in the U.S., speaking at various events including a conference hosted by Wall Street investment bank Cantor Fitzgerald, which manages Tether’s over $100 billion in U.S. Treasury holdings. Notably, former Cantor CEO Howard Lutnick now serves as Secretary of Commerce in the Trump administration.

Tether’s move comes amid growing competition in the rapidly evolving stablecoin market. Financial giant Citi projects the sector could grow to multiple trillions of dollars by the decade’s end. Meanwhile, Circle, issuer of the $62 billion USDC stablecoin, recently announced plans to create a cross-border payments and remittances network.

The launch timing for Tether’s new U.S. stablecoin hinges on forthcoming stablecoin legislation, highlighting the complex regulatory landscape these digital assets face as they continue to gain mainstream attention.

With its existing USDT stablecoin already commanding a market cap of $148 billion, Tether’s entry into the U.S. payments space could significantly disrupt traditional financial services if successful.