Tether, the largest Stablecoin issuer in the Cryptocurrency Market, is preparing to launch a new Stablecoin in the US.
However, according to analysts at Bernstein, the company faces serious challenges as it has to build liquidity and establish distribution channels from scratch.
Tether’s new US product, USAT, aims to meet regulatory compliance requirements such as proof of preparation and bankruptcy protection. However, analysts argue that simply operating within a legal framework is not enough to succeed. They point out that the main challenge for Tether is to create liquidity and integrate it into the US market.
Meanwhile, rival circles have a strong presence in the US market. Its USDC Stablecoin is deeply integrated with US-based institutions such as Coinbase, Bullish and Anchorage Digital. Additionally, analysts stated, “Fundamental change in the fluidity of crypto-ecosystems is extremely difficult, and merely sharing incentives is not enough.”
Tethers need to build liquidity from scratch and attract USAT partners. This is scheduled to start towards the end of the year. Furthermore, if traders do not ensure interoperability with major blockchain networks such as Ethereum and Solana, adoption could stall immediately.
*This is not investment advice.