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Rumble (RUM) is surging after Tether announced that it will launch its new U.S.-regulated stablecoin, USAT, on RUM’s video platform. The move builds on Tether’s $775 mln investment in 2024, which gave it a 48% stake in RUM, and provides a clear financial and strategic pathway for RUM to expand beyond digital media into fintech.

• Tether’s launch of USAT on RUM gives the platform exclusive access to distribute a fully dollar-backed, regulated stablecoin in the U.S., creating a new monetization stream.
• RUM plans to integrate a crypto wallet that supports USAT by year-end, potentially unlocking payment, tipping, and subscription models for its 50+ mln MAUs.
• USAT is positioned to compete with Circle's (CRCL) USDC and PayPal’s (PYPL) PYUSD, allowing Tether to leverage RUM’s predominantly U.S.-based audience as an on-ramp to the American crypto market, where its existing USDT token faces greater regulatory hurdles.
• The partnership provides RUM with a potential financial uplift from transaction fees, higher user engagement, and greater creator monetization opportunities.
• Separately, RUM announced a partnership with Perplexity AI to integrate AI-powered discovery tools, which should improve content search, engagement, and advertising efficiency.

Briefing.com Analyst Insight:

RUM’s integration with Tether’s USAT represents a high-upside catalyst that goes beyond traditional video ad revenues, opening a path into payments and digital asset services. While regulatory execution and user adoption will be key, RUM’s large U.S. user base makes it an attractive launchpad for USAT, which could materially differentiate the platform from rivals like YouTube. Combined with the Perplexity partnership, which should enhance discoverability and user engagement, RUM is positioning itself as both a media and fintech hybrid. This dual strategy could warrant a valuation re-rating if execution proves successful, though near-term volatility is likely given the ambitious pivot.