According to Bloomberg, Tether, the world’s largest stubcoin issuer, will work with video platform Rumble to launch USAT, a newly developed dollar-supported digital asset in the United States.
Tether CEO Paolo Ardoino has announced plans to increase Rumble’s market share by targeting 51 million monthly active users. Rumble integrates the new Crypto wallet into a competitive YouTube platform, allowing users to access USAT and other Stablecoins.
Tether acquired a 48% stake in Rumble in 2024 with an investment of $775 million. “Rumble’s current user base is higher than many of its US competitors.
Tether’s biggest competitor in the US Stablecoin market is USDC issued by Circle. President Donald Trump’s administration has created a legal framework for dollar-backed stubcoins, which are personally issued under the Genius Act.
A few years ago, Tether withdrew from the US, which allegedly made a misleading statement about its reserves, and paid a $41 million fine. However, this time, he is spearheading a new US campaign under the leadership of former White House crypto advisor Beau Hines.
El Salvador-based Tether generates substantial revenue by holding reserves in assets like cash, such as the US Treasury. The company reported profits of $4.9 billion in the second quarter of 2024. These revenues continue to invest in a variety of sectors, including artificial intelligence, energy and commodities.
Ardoino argued that the Rumble partnership will be a strategic hub for not only USAT but Tether’s tokenized gold products. Rumble CEO Chris Pavlovski said in a statement: “The Rumble represents freedom of expression. Tether’s cryptocurrency and the decentralized internet also represent true freedom. Rumble wallets become a product that combines these principles.”
*This is not investment advice.
