BULLISH 📈 : Tether launches USAT to challenge Circle’s USDC in the U.S.

Tether has launched its U.S.-regulated stablecoin, USAT, on January 27, intensifying competition in the U.S. stablecoin market.

Tether collaborates with Anchorage Digital and Cantor Fitzgerald for the USAT launch.
This marks Tether's significant entry into the regulated U.S. market, after the GENIUS Act in July 2025.
USAT aims to challenge Circle's [USDC](https://holder.io/coins/usdc/) dominance.
Despite [USDT](https://holder.io/coins/usdt/) having a $186 billion global market cap, USAT seeks to navigate the competitive U.S. landscape.

Noelle Acheson suggests USAT could be a threat to USDC due to institutional-grade design and partnerships.

Backing from Anchorage and ties with Cantor Fitzgerald are seen as advantages.
Involvement of former White House official Bo Hines may address concerns about Tether’s reserves.

Circle’s USDC is experiencing high demand, especially on [Ethereum](https://holder.io/coins/eth/).

USDC usage on Ethereum has surged, with quarterly transfer volume up ~400% year-over-year, surpassing $4.5 trillion in Q4 2025.

Bitwise expands into DeFi by joining the Morpho network as a vault curator to generate up to 6% APY on USDC through overcollateralized lending.