Tether's New USAT Stablecoin Poses Major Threat to Circle's USDC for Institutional Investment

The stablecoin landscape is shifting as Tether launches its new USAT token, directly targeting institutional investors. This move represents the first significant competitive challenge to Circle's USDC in the institutional capital space. USAT is designed to meet the specific compliance and regulatory demands of large-scale investors, a key market segment where USDC has established dominance. Analysts highlight that Tether's entry with a tailored product could fragment institutional liquidity and pressure Circle's market share. This development signals intensifying competition among stablecoin issuers to capture the growing institutional crypto dollar flow, potentially reshaping the pegged asset ecosystem.