PANews reported on January 28th, citing CoinDesk, that analysts point out that Tether's newly launched USAT stablecoin, focused on the US market, could become Circle's first true competitor to USDC in the country. Analysts believe that by partnering with federally chartered Anchorage Digital Bank and Cantor Fitzgerald, USAT aims to attract institutional users and provide direct access to the regulated financial institutions market that Circle has long dominated. Although Circle's USDC (with a market capitalization of $72 billion) grew at twice the rate of USDT last year, USAT poses a threat due to its institutional-grade design, partnerships with traditional financial institutions, and the potential to access Tether's global network through USDT exchange.

Analysts say that USDC previously lacked competitors of similar size, distribution capabilities, or compliance qualifications in the United States, and the emergence of USAT could change this situation. However, some analysts also point out that this is a "manageable risk" for Circle, and that USAT may pose a risk of cannibalizing Tether's own flagship product, USDT.