Tether’s USAT stablecoin could be a 'threat' to Circle’s USDC for institutional dollars

Tether's newly launched USAT stablecoin, created in partnership with Anchorage Digital and Cantor Fitzgerald, represents the first serious potential competitor to Circle's USDC in the U.S. institutional market. While Circle's USDC has long dominated regulated U.S. operations, analysts suggest USAT is specifically designed to attract the same institutional clients by leveraging Tether's global network and partnerships with traditional finance firms. Advantages cited for USAT include backing from Anchorage and the involvement of former White House official Bo Hines, which may alleviate concerns about Tether's reserve practices. Experts note that USAT's launch signals a market shift toward differential regulatory positioning and institutional trust among regulated dollar tokens, though some caution that the risk to USDC is currently manageable, and USAT could potentially cannibalize Tether's existing USDT dominance.

(Source：CoinDesk)