Bernstein analysts say Tether faces significant challenges launching its new stablecoin, USAT, in the US market. While the product aims to meet US regulatory requirements (including proof of reserves and bankruptcy protection), compliance alone is not enough to guarantee success. Circle already holds a leading position in the US market, with its stablecoin, USDC, deeply integrated with institutions like Coinbase, Bullish, and Anchorage Digital, and widely circulated on chains like Ethereum, Solana, and Hyperliquid. Analysts point out that liquidity is Tether's most formidable hurdle in the US. Compared to Circle, Tether needs to build USAT's liquidity network from scratch and convince partners to accept a primarily offshore issuer. Furthermore, USAT's lack of cross-chain interoperability on major public chains will limit its adoption. USDC has already seen over $9 billion in issuance on Ethereum in a single month, increasing its share of the DeFi stablecoin market to 58%. Meanwhile, Hyperliquid's native stablecoin, USDH, and payments giant Stripe are also vying for new competition. Analysts believe that with the US Genius Act establishing a stablecoin regulatory framework, stablecoins will continue to be the most promising growth track in the crypto market. (DL News)