Tether's USAT could be the first major threat to Circle.

Tether's USAT Competes with Circle's USDC

Financial analysts indicate that Tether's USAT stablecoin, which is focused on the U.S., could become a true local competitor to Circle's USDC token. According to evaluations conducted on the Crypto is Macro Now platform, managed by Noelle Acheson, USAT could pose "a threat" to USDC and gain an advantage through institutional partners and its global USDT connections.

Manageable Risk and Potential Break in Circle

Analyst Owen Lau from the financial consultancy firm ClearStreet characterized USAT as "a manageable risk" for Circle. He also highlighted the potential risk of "self-cannibalization" between Tether's two tokens.