Tether’s New Stablecoin: A Daring Duel with Circle’s USDC!

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Ah, Tether! On January 27th, they pranced onto the scene with their freshly minted U.S.-regulated stablecoin, USAT. Naturally, this has sent shockwaves through the market-who doesn’t love a bit of drama?

Some financial wizards are wringing their hands in glee, pondering whether this new contender might pose a threat to Circle’s beloved USDC. It seems competition in the U.S. stablecoin soirée is heating up, darling!

With USAT, Tether has thrown its feathered hat into the ring of the regulated U.S. market. Bravo!

Will Tether’s USAT Outshine Circle’s USDC?

On this fateful day, Tether, the reigning stablecoin superstar, joined forces with the illustrious federally chartered bank Anchorage Digital and the ever-so-fancy Cantor Fitzgerald to unveil its USAT stablecoin.

Thanks to the GENIUS Act (yes, that’s really what it’s called) passed in July 2025, Tether is now making a bold entrance into the regulated U.S. market with USAT. How thrilling!

While USDT reigns supreme globally, sporting a cheeky $186 billion market cap, USAT is ready to strut its stuff in this compliance-heavy, cutthroat U.S. stablecoin realm.

In the land of the free, Circle’s USDC has become the darling of banks, fintechs, and all things regulated. Its market capitalization has skyrocketed to an impressive $72 billion-if only my bank account could be so lucky!

Yet, some market seers suggest that Tether’s USAT might just shake Circle’s throne. Oh, the suspense!

Noelle Acheson, the astute author of the Crypto Is Macro Now newsletter, quipped:

“I believe USAT is a threat to USDC, even though the DNA of Tether and Circle is very different. USAT is designed to be institutional-grade, looking to attract clients that would otherwise be happy using USDC.“

She went on to highlight Tether’s delightful advantages, including the backing of Anchorage and partnerships with venerable finance firms like Cantor Fitzgerald. Who knew they had such charming friends?

Oh, and let’s not forget the dashing former White House official Bo Hines swooping in to ease any lingering concerns about Tether’s reserve practices. What a knight in shining armor!

After the grand unveiling of USAT, Circle’s official USDC handle on X made it abundantly clear: they intend to hold onto their crown as the reigning champion of the U.S. stablecoin arena. How noble!

USDC Usage on Ethereum Hits Record Levels

Meanwhile, Circle’s star-studded stablecoin, USDC, continues to dazzle the market with its undeniable allure, maintaining a rapturous demand.

CEO Jeremy Allaire proudly proclaimed that USDC’s usage on Ethereum
has seen a delightful surge. A bit of a show-off, isn’t he?

According to those clever folks at Token Terminal, USDC usage on Ethereum is hitting record-breaking heights-how positively exhilarating!

The data reveals that quarterly USDC transfer volume on Ethereum has ballooned by a staggering 400% year over year, soaring past $4.5 trillion in Q4 2025. Just think of the galas one could throw with all that cash!

USDC usage on @ethereum is at an all-time high.

Quarterly transfer volume is up ~400% YoY, surpassing $4.5 trillion in Q4 ’25.@circle 🤝 Ethereum

– Token Terminal 📊 (@tokenterminal) January 27, 2026

And if that weren’t enough to keep you on the edge of your seat, crypto asset manager Bitwise has delightfully expanded into decentralized finance by joining the Morpho network as a vault curator. Oh, the audacity!

The firm has announced that its first on-chain strategy will aim to yield up to 6% APY on USDC through overcollateralized lending. How simply riveting!

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2026-01-28 14:04