Tether's launch of a new U.S.-backed stablecoin signals a turning point for digital assets, Wave Digital Assets co-founder Les Borsai told Newsmax on Tuesday.
"[It's] super exciting. I was actually at the launch event in New York," Borsai said on "National Report." "The first part that's exciting about this is Bo Hines, who obviously was working with David Sacks in this administration, came over to be the CEO of USA Tether."
Tether, the El Salvador-based creator of the world's largest stablecoin, will launch a U.S.-focused token called USAT by year's end, CEO Paolo Ardoino said Friday. Hines, a former White House official, will lead the new venture, underscoring Tether's push to expand in the U.S., where crypto firms have benefited from President Donald Trump's pro-crypto stance.
Stablecoins, Borsai said, are digital tokens pegged to a reserve and designed to hold steady value.
"Tether historically has had a lot of problems in the United States, everything from the CFTC finding them not providing proper audits, and really a lot of scrutiny on what their reserves looked like," he said. "Bo coming in changes all of that. It's such a massive move to see Bo leave the White House and come in and take the helm of Tether USAT."
On Bitcoin's resilience and the more than $2 billion that poured into crypto-related investment funds this week, Borsai said investor momentum is broad-based.
"I think there's a lot driving it. The ETFs, as you mentioned, are driving a lot of this," he said. "We also have these digital asset treasury plays right now where you take assets. And you know these public companies that are launching, I think there's been about 78 launches since June of new public crypto companies.
"So there is just energy in the space all over. The other announcement about the Fed possibly reducing ... we start to see Bitcoin as an interesting hedge. So I think it just continues."
With the Federal Reserve signaling a potential rate cut, Borsai said lower borrowing costs could boost Bitcoin and broader opportunities.
"I think it is a possibility. And I think what we heard is on the 17th, it was going to be something like 25 basis point cut," he said. "It signals a lot in terms of, we always looked at Bitcoin as a store of value. I think it's going to open up economic opportunity."
Borsai added that the regulatory and monetary policy shifts point to growing validation of crypto.
"The funny thing is, it's not just about that," he said. "The real kind of messaging with the stablecoins as well as the Fed announcement, is, crypto is on the forefront here. And every time these stablecoins have a reserve behind them, it's good for the U.S. dollar. So it's an exciting time right now."
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Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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