Monthly surge catapults Tether's dollar-pegged asset to dizzying heights, yet trails dominant competitors.

Stablecoin giant Tether's U.S.-focused digital dollar token $USAT ($USAT) expanded more than sixfold month-over-month in April, it still lags far behind its rivals.

According to the latest reserve report $USAT_Stablecoin_Attestation_Report%20(FINAL)%20signed%205.27.26.pdf?_gl=1*14d7hiu*_gcl_au*MTUxODc4ODMyMi4xNzc0MzY4OTM3" target="_blank" rel="noopener noreferrer">signed by Deloitte and published Thursday, the token's circulating supply hit $140.8 million as of April 30, up from $22 million in March and posting a 540% growth in a month. Reserve assets backing the token rose to $141.2 million from $22.2 million in March, the report showed.

Bo Hines, CEO of Tether $USAT, said the growth reflects "increased use across institutional treasury operations, settlement flows, and regulated dollar liquidity management."

"The broader policy environment is moving in the right direction, and $USAT is already operating in the kind of structure that institutions are asking for," he added.

The stablecoin market has grown past $300 billion in value as the sector is becoming increasingly embedded into global finance and payment rails. The GENIUS Act, which created a federal framework for dollar-backed stablecoins, further boosted that trend, opening the door for banks, fintech firms and crypto companies to offer regulated digital dollars in the U.S.

$USAT debuted in January and is issued by Anchorage Digital, the federally chartered crypto bank that Tether partnered with to expand into the U.S. market. Tether's flagship stablecoin, $USDT, remains the largest U.S. dollar-pegged token globally with a market capitalization near $189 billion. $USDT is regulated in El Salvador and is widely used in emerging markets for payments, savings and trading.

Despite last month's spur of growth, $USAT still has a lot to catch its main rivals that eye U.S. customers.

Circle's USDC token has a market capitalization of roughly $76 billion, while , issued by Paxos, stands at about $5.5 billion. , which debuted in 2024 December, has grown to roughly $1.7 billion.