Key Takeaways:
- Tether’s USDT supply is $170 billion, more than double USDC’s $73 billion.
- USAT is issued under U.S. rules, with Anchorage Bank and Cantor Fitzgerald backing it.
- USAT could cut into Circle’s U.S. stronghold, giving Tether both global and U.S. reach.
Stablecoins are digital tokens that are tied to the value of the U.S. dollar. People use them in crypto so they can trade quickly without leaving the blockchain. For years, the big story has been Tether vs. Circle. Tether makes the biggest stablecoin, called USDT. Circle makes the second biggest one, called USDC.
No, Tether has made a new token called USAT. This one is built to follow U.S. rules more closely. Because of this, the fight of USDT vs. USDC may no longer be the only one to watch.
Circle’s U.S. Stronghold
Circle’s stablecoin, USDC, is the second largest in the world. Its total size is about seventy-three billion dollars.
Circle tells people that every USDC is backed by one U.S. dollar in a bank account. That is what “one is to one” means.
Circle also reports to U.S. agencies like the SEC. It follows Europe’s new MiCA law. This makes many banks and payment companies feel safe using it. For example, Visa, Mastercard, Stripe, and Coinbase all use USDC in their work.
Because of this, USDC has become the coin that many U.S. companies and institutions trust most. You can say it has been Circle’s strong base in America.
Tether’s Global Reach vs. Circle
Tether’s coin, USDT, is much larger. Its total supply is about one hundred seventy billion dollars. That is more than double USDC. Traders all over the world use it, especially in Asia and Latin America.
USDT is the main pool of money for global crypto trades.
But Tether has had a harder history. For years, people asked if it really had enough dollars to back all its coins. It was also looked at by regulators and police. Even so, traders kept using it because it was fast and everywhere.
So in the story of USDT vs. USDC, Tether won outside the U.S., while Circle won inside the U.S.
What USAT Changes in the Tether vs. Circle Battle
Now Tether is trying to win in America too.
It has launched USAT, a stablecoin that will follow U.S. rules. The GENIUS Act, a new U.S. law, sets the rules for stablecoins. USAT will be made by Anchorage Digital Bank.
The money to back it will be held by Cantor Fitzgerald, a large finance company.
USAT is also called “non-yielding.” That means it will not pay any interest or extra return. This helps it avoid being treated as a security by U.S. regulators.
Tether has also hired Bo Hines, a former White House official, to run its U.S. branch. This shows that Tether wants to look serious about following rules.
This changes the game. Tether now has two coins:
- USDT for use all over the world.
- USAT for use inside the U.S. under strict rules.
This could pull some companies away from USDC. If banks and payment firms see USAT as safe, they may choose it instead of Circle’s coin.
Why Circle May Be Under Threat
Tether has billions of dollars in profit from USDT. It can spend that money to promote USAT in the U.S. Analysts say this is a risk for Circle.
For example, about 7.5% of all USDC is locked in Hyperliquid, a futures trading platform. If traders move away, that share could shrink. Some analysts at Mizuho say USDC now looks “commoditized,” meaning it is treated like a basic product with no special edge. That could slow its growth.
But other analysts, like those at Bernstein, think Circle can still grow, even with USAT entering the field.
Right now, the market is splitting into three groups:
- USDT for global everyday use.
- USDC and USAT as the U.S. rule-following coins.
- New coins like USDe and USDH that try to give extra returns.
The question is whether Circle can keep its lead in the U.S. or whether Tether will break into its base.
For years, the story was USDT vs. USDC. Tether led outside the U.S., Circle led inside the U.S. Now with USAT, the fight between Tether and Circle enters a new round.
Tether finally has a coin that U.S. regulators may accept in the form of USAT. If it works, Circle’s hold on the U.S. market could weaken. If not, Circle may stay on top. Either way, this fight will decide how stablecoins are used in America and in the rest of the world.