USAT vs USDT vs USDC: Which Stablecoin is Superior?

Stablecoins play a crucial role in the crypto industry. From trading and DeFi to cross-border payments, almost everything relies on digital dollars.

However, with the increasing number of stablecoin options, such as USAT, USDT, USDC, which stablecoin is superior? These three stablecoins are all pegged to the US dollar (1:1 USD), but have different approaches in terms of regulation, target market, and business strategy.

In this article, we'll discuss a comprehensive comparison of USAT vs. USDT vs. USDC, from their backgrounds, reserve structures, to their respective advantages.

Key Takeaways

• USDT excels in terms of global liquidity, while USAT focuses on US regulatory compliance.
• USDC is known as the first established US-regulated stablecoin, but is now facing challenges from USAT.
• The choice between USAT vs USDT vs USDC depends on the needs, such as global retail, US institutions, or the DeFi ecosystem.

What is USAT Stablecoin?

Image Source: USAT

USAT (USA₮) is Tether's newest stablecoin, designed to always be worth 1 US dollar. Unlike Bitcoin or Ethereum, whose prices fluctuate, USAT focuses on value stability.

Each USAT token is fully backed by liquid reserves in the form of cash in USD and short-term U.S. Treasury Bills.

There's no leverage and no reuse of reserves. This means that each USAT truly represents a claim on a real asset stored off-blockchain.

USAT Stablecoin Background

The launch of the USAT stablecoin cannot be separated from the huge success of USDT. Throughout 2024, USDT served more than 500 million users worldwide and generated more than $13 billion in profits. 

However, regulatory pressure in the US is growing, especially after the GENIUS Act was officially passed on July 18, 2025. This law is the first federal framework to comprehensively regulate stablecoin issuers.

In response to the new regulations, on September 12, 2025 Tether introduced USAT, along with a change in company leadership.

The strategy is clear: to maintain USDT's global dominance while also introducing a dedicated stablecoin that is fully compliant with US regulations.

With this dual-token strategy, Tether can serve the global market through USDT and simultaneously attract the interest of financial institutions in the United States through USAT.

USAT vs USDT: One Company, Two Strategies

When it comes to USAT vs USDT, both are derived from Tether, but their target markets are different.

USDT: The King of Global Liquidity

Image Source: USDT

USDT stablecoin currently has a market capitalization of over $169 billion. This token is available on nearly every crypto exchange and DeFi protocol worldwide.

USDT's main focus is:

- High liquidity

- Global access

- Wide support across multiple blockchains

USDT operates internationally with a periodic attestation system.

USAT: Focus on American Regulation

Unlike USDT, USAT is designed specifically for the US market and institutions that require federal legal compliance.

Some important differences:

- USAT is under federal supervision

- Audits are conducted monthly

- Issued through regulated institutions

Both are pegged 1:1 to the US dollar, but USAT adds an issuance structure through Anchorage Digital as well as reserve custody by Cantor Fitzgerald.

In short, USDT is for the global and retail markets, while USAT targets US institutions.

USAT vs USDC: A Battle for Institutional Trust

Meanwhile, if you compare USAT vs USDC, the competition becomes more interesting.

USDC: The Pioneer of US-Regulated Stablecoins

Image Source: USDC

USDC stablecoin, issued by Circle, has long been recognized as a stablecoin compliant with US regulations. With a capitalization of around $72 billion, it is a preferred choice for many institutions and fintech companies.

USDC built its reputation through:

- Close relationship with regulators

- Audit routine

- Reserve transparency

USAT: A New Challenger on a Global Scale

USAT tries to challenge USDC's position by combining two forces:

- Tether's operational experience serving 500 million users

- Compliance with the GENIUS Act

Tether is also one of the largest holders of U.S. Treasuries in the world, which gives it additional credibility.

Additionally, the partnership with Cantor Fitzgerald adds a touch of “Wall Street credibility” that could offset USDC’s reputational advantage.

Main Advantages of USAT

In the USAT vs USDT vs USDC battle, the USAT stablecoin has several interesting plus points:

1. Supported by Tether's Scale and Profitability: With billions of dollars in annual profits, Tether has significant resources to support USAT's development and regulatory compliance.

2. Strategic Position in the US Treasury Market: As a large holder of U.S. Treasuries, Tether has direct exposure to the U.S. debt market.

3. Clear Regulations: USAT was born after the GENIUS Act was enacted, entering the market with greater legal certainty than previous generations of stablecoins.

4. Global Distribution Infrastructure: Despite its focus on the US market, USAT can still leverage Tether's established global distribution network.

Which Stablecoin is Superior?

So, which stablecoin is superior between USAT vs USDT vs USDC? The real answer depends on the user's needs.

- If you're a retail trader who needs high liquidity and global access, USDT remains the top choice.

- If you are a US institution that prioritizes federal compliance, USAT or USDC may be a better fit.

- If you're looking for a stablecoin that's already established under US regulations, USDC has a longer track record.

Each stablecoin has a different positioning, it's not just about who is the biggest.

Conclusion

A comparison of USAT vs USDT vs USDC shows that all three have advantages in their respective segments.

USDT remains the global liquidity king, USDC maintains its reputation as a well-established US-regulated stablecoin, while USAT emerges as a new challenger that combines Tether's scale with GENIUS Act compliance.

There's no definitive answer as to which is superior. It all comes down to user needs: whether you're a global retail trader, a fintech company, or a US financial institution. Clearly, this competition is strengthening the stablecoin industry and providing more options.

FAQ

What are the main differences between USAT vs USDT vs USDC?

USDT focuses on global liquidity, USDC is known as a well-established US-regulated stablecoin, while USAT is specifically designed to comply with the GENIUS Act and target American institutions.

Is USAT safer than USDT?

USAT is under US federal oversight and monthly audits, thus offering a higher level of regulatory compliance than USDT.

Why did Tether create USAT when it already has USDT?

USAT was created to comply with ASt regulations after the GENIUS Act came into effect, while USDT remains focused on the global market.

Which one is more suitable for day trading?

USDT is generally better suited for day trading due to its high liquidity and availability on almost all exchanges.

Can USAT compete with USDC?

The potential is there, particularly given Tether's scale and institutional partnerships. However, USDC still has a long-standing reputation for compliance with US regulations.