Bernstein: Tether faces liquidity and distribution challenges in launching a U.S. compliant stablecoin

ChainCatcher news, Bernstein analysts indicate that Tether will face significant challenges in launching its new stablecoin USAT in the U.S. market. Although the product is designed to meet U.S. compliance requirements, including reserve proof and bankruptcy protection, compliance alone is not enough to ensure success. Circle has already established a leading position in the U.S. market, with its stablecoin USDC deeply integrated into institutions such as Coinbase, Bullish, and Anchorage Digital, and widely circulated on chains like Ethereum, Solana, and Hyperliquid.

Analysis points out that liquidity is the most difficult barrier for Tether to overcome in the U.S. Compared to Circle, Tether needs to build a liquidity network for USAT from scratch and persuade partners to accept an issuer that primarily operates offshore. Furthermore, if USAT lacks cross-chain interoperability on mainstream public chains, its adoption rate will be limited. Currently, USDC has issued over $9 billion in a single month on Ethereum, increasing its share of the DeFi stablecoin market to 58%. Meanwhile, Hyperliquid's native stablecoin USDH and payment giant Stripe are also positioning themselves for new competition. Analysts believe that as the U.S. "Genius Act" establishes a regulatory framework for stablecoins, stablecoins will continue to be one of the most promising growth areas in the crypto market.