Bernstein: Tether's launch of US-compliant stablecoin USAT faces liquidity and distribution problems

According to Golden Finance, Bernstein analysts said that Tether will face huge challenges in launching a new stablecoin USAT in the US market. Although the product is designed to meet U.S. compliance requirements, including proof of reserves and bankruptcy protection, compliance alone is not enough to ensure success. Circle has already taken the lead in the US market, with its stablecoin USDC deeply integrated into institutions such as Coinbase, Bullish and AnchorageDigital, and widely circulated on chains such as Ethereum, Solana and Hyperliquid. Analysis points out that liquidity is Tether’s most difficult obstacle to overcome in the United States. Compared to Circle, Tether needs to build a liquidity network of USAT from scratch and convince partners to accept an issuer that operates primarily offshore. In addition, if the cross-chain interoperability of USAT on mainstream public chains is insufficient, the adoption rate will be limited. Currently, USDC has issued more than US$9 billion in Ethereum in a single month, accounting for 58% of the market share of DeFi stablecoins. At the same time, Hyperliquid's native stablecoin USDH and payment giant Stripe are also planning new competition. Analysts believe that as the US GeniusAct establishes a stablecoin regulatory framework, stablecoins will continue to become the track with the most growth potential of the crypto market.