StableCoin

This article provides a systematic analysis of how, in the wake of increased stablecoin regulation, the competition between USDT and USDC has evolved from a focus on issuance scale to an emphasis on compliance capabilities, distribution channels, on-chain liquidity, and commercialization efficiency. It further examines the stratified competitive landscape between the two across trading, payments, institutional adoption, and emerging marketplaces, while exploring potential future developments.

USAT (USA₮) is a compliant stablecoin backed primarily by short-term U.S. Treasury securities, designed to maintain a 1:1 peg with the U.S. dollar. It is built for institutional-grade on-chain settlement and treasury management. Issued in partnership with regulated financial institutions, it emphasizes asset transparency, high liquidity, and low risk. Unlike most stablecoins, USAT does not distribute yield to holders. Instead, it is positioned as an “on-chain cash equivalent,” suitable for exchange settlement, institutional payments, and cross-border fund transfers.

USAT (USA₮) maintains a 1:1 peg to the U.S. dollar by allocating user funds into highly liquid, low-risk U.S. Treasury assets. This model represents a typical RWA (Real World Asset) stablecoin approach, where stability is derived from the creditworthiness of U.S. government debt and its ability to be quickly converted into cash. Compared to other stablecoins, USAT improves transparency and institutional trust by simplifying its reserve structure and emphasizing high-quality assets, though it still faces risks such as interest rate fluctuations, regulatory changes, and centralized custody.

USDS is a decentralized stablecoin launched by Sky Protocol as an upgraded version of DAI. It maintains its peg to the US dollar through overcollateralization and liquidation mechanisms, while supporting 1:1 conversion with DAI. Compared to DAI, USDS introduces improvements in incentive design, yield integration, and ecosystem scalability, making it a more composable stable asset within DeFi.

Venus Protocol is a decentralized finance protocol built on the BNB Chain. By integrating crypto asset lending with stablecoin issuance, it brings deposits, collateralized borrowing, and liquidity creation into a single on-chain system, shifting capital management from fragmented operations to a unified framework.

With stablecoin legislation taking effect in the United States, Hong Kong’s licensing framework advancing, and Stripe and Visa accelerating their entry, stablecoins are rapidly transforming from a medium of trade to the core infrastructure for global payments and on-chain settlement. This article explores why, by 2026, stablecoins are poised to become the most powerful narrative in the crypto marketplace.

Tether (USDT) is a stablecoin pegged to the US dollar. It is widely used for crypto trading, cross-border transfers, and hedging against volatility. Because its value remains relatively stable, USDT often serves as a pricing unit and liquidity tool in the crypto market. It also acts as a key medium for transferring value between different digital assets.

Chainalysis projects that stablecoin trading volume could reach $15 trillion by 2035. This article conducts a multi-dimensional analysis, covering statistical methodologies, payment and settlement use cases, institutional capital pathways, regulatory and compliance progress, as well as technical infrastructure and liquidity constraints. It distinguishes between trading volume and market capitalization, provides a scenario-based assessment framework and key monitoring indicators, and is designed to help investors and industry participants objectively evaluate the long-term narrative’s feasibility and potential risks.

Tether (USDT) is a stablecoin pegged to the US dollar and issued by Tether Limited. It is designed to maintain a relatively stable value against fiat currency, offering the crypto market a low-volatility medium of exchange. USDT typically operates with a 1:1 peg to the US dollar, making it a commonly used tool for crypto trading, cross-border transfers, and risk management. It also serves as a foundational liquidity asset in the digital asset market.

Tether and USD Coin are currently the most representative USD-pegged stablecoins in the crypto market. Both are designed to maintain a value close to the US dollar, helping reduce the volatility of crypto assets while providing a stable medium of exchange and store of value. As stablecoins become increasingly integrated into trading, fund management, and on-chain finance, USDT and USDC have emerged as the two most commonly used and compared stable assets.

Tether (USDT) is a fiat-collateralized stablecoin designed to maintain a value close to 1 US dollar. As a dollar-pegged digital asset, its primary goal is to reduce price volatility in the crypto market while providing a relatively stable medium of exchange and store of value.

A stablecoin is a cryptocurrency with a stable price, which is often pegged to a legal tender in the real world. Take USDT, currently the most commonly used stablecoin, for example, USDT is pegged to the US dollar, with 1 USDT = 1 USD.

USDe is a fully collateralized semi-centralized stablecoin whose collateral value changes with variations in spot prices and futures position values. Ethena provides two methods: delivery contracts and perpetual contracts. The yields of the two methods are different, but both can obtain low-risk returns.

Ethena.fi tokenises a ‘delta neutral’ carry trade on ETH by issuing a stablecoin which represents the value of the delta neutral position. Their stablecoin, USDe, also collects the carry yield - hence their claim, an internet bond providing internet native yield.

Liquity is a decentralized lending protocol that allows users to borrow a stablecoin called LUSD (pegged to the US dollar) using Ethereum as collateral. It also introduces a fully redeemable stablecoin, LQTY. The protocol, designed by Robert Lauko, aims to offer a more capital-efficient and lower-risk alternative to existing systems like MakerDAO.