The Connection Between Trump’s Federal Reserve Nominee and Tether’s ‘American-Made’ Stablecoin

Kevin Warsh’s Influence on Anchorage Digital and Tether’s U.S. Expansion

Kevin Warsh, recently nominated by former President Donald Trump to lead the Federal Reserve, has played a significant role in the development of Anchorage Digital—a company central to Tether’s ambitions to establish a regulated presence in the United States.

Before being selected by Trump for the Fed chair position, Warsh spent several years as an advisor to Anchorage Digital. His name appeared on the company’s advisory board until it was removed after January 16, according to records from the Internet Archive.

Anchorage Digital’s co-founder and CEO, Nathan McCauley, shared on X that he was “thrilled” about Warsh’s nomination, emphasizing that Warsh has been involved with Anchorage since its inception.

Anchorage Digital’s Role with Tether

Anchorage Digital is responsible for issuing Tether’s USAT stablecoin. When USAT launched last week, Tether’s CEO Paolo Ardoino highlighted that it was “made in America,” marking the company’s first stablecoin to comply with new U.S. regulations enacted this summer.

If Warsh’s advisory relationship with Anchorage had continued, it would have connected him to Commerce Secretary Howard Lutnick, who previously led Cantor Fitzgerald—the investment firm that manages a portion of Tether’s USDT reserves.

“We appreciate Kevin Warsh’s years of guidance to Anchorage Digital and wish him well during the confirmation process, as he is an outstanding candidate,” a spokesperson for Anchorage stated to Decrypt.

For years, Cantor Fitzgerald’s involvement in safeguarding the assets backing Tether’s $185 billion stablecoin has been public knowledge. Recently, Tether announced that Cantor would also act as the designated reserve custodian and preferred primary dealer for USAT.

Regulatory Compliance and Asset Backing

Tether’s main stablecoin is partially supported by assets like Bitcoin and gold, which do not fully meet the new U.S. regulatory standards for stablecoin issuers. However, Tether, now based in El Salvador, has committed that USAT will comply with these rules, utilizing a bank with which Warsh has had professional ties as part of its infrastructure.

Decrypt has contacted Tether for a statement.

Context Around Trump’s Nomination

Trump’s decision to nominate Warsh comes amid growing concerns over the Federal Reserve’s autonomy. During his presidency, Trump repeatedly urged current Fed Chair Jerome Powell to lower interest rates. Tensions escalated last month when it was revealed that the Department of Justice had launched a criminal investigation into Powell, bringing the conflict to a head.

What Trump’s Fed Pick Kevin Warsh Means for Crypto

About Anchorage Digital

Founded in 2017, Anchorage Digital became the first cryptocurrency bank in the U.S. to receive a federal charter, enabling it to bridge the gap between traditional finance and digital assets under regulatory oversight.

Additional Developments

In May of last year, Cantor Fitzgerald announced that Howard Lutnick had completed a significant divestment of his interests in the company and its subsidiaries to adhere to government ethics requirements. His shares were transferred to trusts benefiting his children.

Cantor Fitzgerald declined to provide a comment when contacted by Decrypt.

On Saturday, Trump expressed his belief that Warsh would be confirmed by the Senate, according to Reuters. He described Warsh as a “high-quality person” who could attract bipartisan support, stating that he should have no difficulty securing confirmation.