Tether, issuer of the world’s largest stablecoin USDT, may offer a new token specifically for the U.S., according to a Financial Times report on Monday.

Paolo Ardoino said the company had been involved in discussions about the U.S. rules on stablecoins and that it may create a token just for the U.S, depending on how these discussions unfold, the FT reported, citing an interview with the Tether CEO.

Ardoino said that if new rules are brought in»make [U.S.] stablecoins competitive, there could be an interest from Tether to create a domestic stablecoin,» which would be «basically a settlement currency.»

He added that the Trump administration views stableoins as «an important instrument in the United States.»

Stablecoins are digital tokens pegged to the value of a traditional financial asset, most commonly the U.S dollar.

Regulations being considered by President Donald Trump’s administration include plans to force foreign issuers trading crypto to comply with U.S. laws.

Tether did not immediately respond to CoinDesk’s request for further comment.

Analysis of on-chain data curated by DefiLlama shows that nearly $100 million in ether (ETH) positions are at risk if the price slides by 15%.

Traders in Asia faced a sea of red during the Monday business day as the ripple effects of U.S. President Donald Trump’s tariff policy were felt around the world.

ETH is down nearly 16% Monday, according to CoinDesk data, now trading above $1490, while the CoinDesk 20 index is down 13%, and market participants fear that the U.S. open could bring more pain.

Should the U.S. open bring another 15% drop in ETH’s price, sending it below $1,274, more than $100 million in leveraged positions could face imminent liquidation.

On-chain liquidations are potentially more impactful than those related to derivatives as it involves spot assets being sold onto the market. In MakerDAO’s case, a liquidated position is auctioned off at a cheaper rate to traders who can then sell at a relative premium, flooding the market with supply and creating more sell pressure.

One wallet which would get liquidated at $1418 had a number of close calls Monday but trimmed its holdings of ETH and paid back repaid some of the DAI it owed.

DeFiLlama data also shows that should the price of ETH sink by 20%, another $36 million is at risk.

The largest single ETH position, with $147 million in collateral locked, has a strike price of $1,132.

Lending protocols were some of the hardest hit tokens during the Monday Asia trading day, with CoinGecko data showing that the category is down 17% on-day as concern grows about the health of levarage around some positions.

Financial markets are in a meltdown and every leg lower is strengthening expectations in the credit market that the Fed will soon offer support.

Bitcoin (BTC), the leading cryptocurrency by market value, traded 8% lower at $75,800 and the U.S. stocks were on track for their worst three-day performance, with S&P 500 futures down roughly 5% on Monday alone and losses approaching 15% overall.

The Fed has a history of intervening during financial meltdowns with rate cuts and other stimulus measures. So, traders, having become accustomed to liquidity support, are betting that the Fed will act similarly this time.

According to the CME FedWatch Tool, the federal funds futures market is now pricing in as many as five rate cuts in 2025. For the upcoming May 7 meeting, there’s a 61% probability of a 25 basis point cut, which would lower the target range to 4.25–4.50%. By year-end, the market sees the fed funds rate falling as low as 3.00–3.25%.

The risk-off, coupled with the growth scare and Fed rate cut bets, is giving Trump administration what it wants – plunging Treasury yields. The all-important 10-year yield — the benchmark for the U.S. economy — has dropped to 3.923%.

The popular narrative is that lower yields would make it easier for the Treasury to refinance trillions of dollars in debt in the coming 12 months, which is why the Trump administration may be more tolerant of the asset market swoon.

This refinancing urgency stems from a policy shift under former Treasury Secretary Janet Yellen, who moved from longer-dated coupon issuance to short-term Treasury bills. Since 2023, about two-thirds of the deficit had been financed through bill issuance — short-term debt with rates hovering around 5%. While this may have temporarily supported liquidity, it created a ticking time bomb of expensive short-term debt that now needs to be rolled over.