The upcoming token, called USAT, is designed to comply with American regulations, including requirements for reserves transparency and bankruptcy safeguards. While these features may satisfy regulators, Bernstein analysts argue that the real challenge lies elsewhere.

They emphasize that success in the U.S. stablecoin market will depend on building liquidity from the ground up and creating strong distribution networks—tasks that won’t be easily achieved.

Circle, the issuer of USDC, already holds a dominant position thanks to its deep connections with major U.S. players such as Coinbase, Bullish, and Anchorage Digital.

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Analysts highlight that liquidity in crypto markets does not shift easily, and incentives alone are unlikely to draw users away from established competitors.

For Tether, the test will come later this year when USAT is expected to launch. Beyond regulatory approval, the stablecoin will need to secure adoption across key blockchain ecosystems like Ethereum and Solana. Without strong integration, analysts warn, momentum could stall quickly.

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