“While Circle’s USDC has operated without a “credible domestic competitor,” Tether’s USAT has the potential to shake up the landscape, analysts said.”, — write: www.coindesk.com
Launched in partnership with federally chartered bank Anchorage Digital and Cantor Fitzgerald, USAT is Tether’s first attempt at a US-regulated dollar token aimed at institutional users.
Tether’s flagship stablecoin, the $186 billion USDT, dominates global crypto trading and emerging markets. But USAT enters a more crowded and compliance-driven arena in the US where Circle has long positioned USDC as the go-to choice for banks, fintechs and exchanges operating under US oversight. USDC has a market capitalization of $72 billion, less than half of Tether’s USDT, but it grew twice as fast last year.
“I believe USAT is a threat to USDC, even though the DNA of Tether and Circle is very different,” said Noelle Acheson, author of the Crypto Is Macro Now newsletter. While Circle has long positioned its token as the stablecoin of choice for regulated financial entities, USAT is clearly built to compete in that same arena, she argued.
“USAT is designed to be institutional-grade, looking to attract clients that would otherwise be happy using USDC,” she said.
Acheson pointed to several potential advantages: backing from Anchorage, partnerships with traditional finance firms like Cantor Fitzgerald, which also provides services to Tether’s USDT, and the potential ability to tap into Tether’s global network through conversion with USDT.
She also noted that the involvement of former White House official Bo Hines in the project may ease concerns about Tether’s long-criticized reserve practices. “That could help institutions overcome their reluctance,” she said.
Nicholas Roberts-Huntley, CEO of Blueprint Finance, argued that Tether’s US entrance underscores that “demand for regulated dollar tokens among banks and fintechs is real” after the stablecoin-focused GENIUS Act was enacted. It also shows that the stablecoin market is “shifting from size and utility to differential regulatory positioning and institutional trust.”
“USDC has operated without a credible domestic competitor, as other entrants lacked the scale, distribution, or regulatory profile to challenge its position,” he said. “The launch of USAT could change that.”
Owen Lau, analyst at ClearStreet, took a more cautious view.
“It is too early to gauge at this point,” he said. “But I think it poses a risk, but a manageable one for CRCL/USDC.”
It could also carry risks for Tether, with the new token eating into USDT’s existing dominance. “There may even be a cannibalization risk,” he said.
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
View Full Report
The investment round was led by Dragonfly Capital and included participation from Paradigm, Moderne Ventures, Coinbase Ventures and SBI Investment.
- Cryptocurrency payments network Mesh acquired unicorn status with a $75 million Series C funding round that valued the company at $1 billion.
- The fund raise, coupled with the ceremonial significance of Mesh acquiring unicorn status, may demonstrate confidence in crypto infrastructure projects despite a relatively depressed market.
- Mesh said part of the $75 million raise was settled using stablecoins to demonstrate that its infrastructure is “ready for high stakes, real-world use.”
Read full story