Tether's USAT Stablecoin Jumps 500% to $140M Market Cap
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
stablecointetherusat
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Tether’s U.S.-centric stablecoin, USAT, expanded its market capitalization by over 500% during April, surpassing $140 million. The rapid growth was reported on May 28, 2026, based on data from CoinMarketCap. Despite the explosive monthly gain, USAT's size remains a fraction of its primary competitors, including Circle’s USDC, PayPal’s PYUSD, and Ripple’s RLUSD. PayPal Holdings Inc. (PYPL) traded at $44.37 as of 19:03 UTC today, up 0.46% on the day, while XRP (RIPPLE) saw a 24-hour increase of 0.36% to $1.33.
The surge for USAT occurs as traditional financial institutions aggressively expand their digital asset offerings. PayPal launched its PYUSD stablecoin in August 2023, and Ripple’s RLUSD entered the market in late 2025, signaling a strategic pivot towards blockchain-based payment rails. The current macro backdrop features heightened regulatory scrutiny of stablecoin issuers, with proposed U.S. legislation aiming to establish federal oversight for dollar-pegged tokens. This regulatory pressure creates both a hurdle and an opportunity for new entrants that can demonstrate strong compliance. The catalyst for USAT's growth appears to be a targeted on-boarding of U.S.-based crypto exchanges and payment processors seeking a Tether-branded alternative with a specific stateside focus, differentiating it from the globally-oriented USDT.
USAT’s market cap climbed from an estimated base below $25 million to over $140 million in the 30-day period ending in April. This represents a growth rate exceeding 500%. In comparison, the market leader, Tether’s USDT, holds a market cap of over $110 billion. Circle’s USDC maintains the second-largest position with a market cap of approximately $33 billion. PayPal’s PYUSD, while smaller, has seen steady adoption with a market cap around $400 million. Ripple’s RLUSD, the newest major entrant, has a market cap just above $200 million. The 24-hour trading volume for XRP, Ripple's associated digital asset, was $2.46 billion, illustrating the substantial liquidity in the broader ecosystem that stablecoins like USAT aim to serve. The following comparison illustrates the scale differential:
| Stablecoin | Approximate Market Cap (April 2026) |
|---|---|
| USDT (Tether) | $110 Billion |
| USDC (Circle) | $33 Billion |
| PYUSD (PayPal) | $400 Million |
| RLUSD (Ripple) | $200 Million |
| USAT (Tether U.S.) | $140 Million |
The growth of USAT is a net positive for Tether’s consolidated market share, allowing it to compete more directly for U.S.-specific institutional flows that may have been hesitant to use its global USDT token. This could pressure revenue projections for pure-play stablecoin rivals like Circle. For publicly traded entities, the intensifying stablecoin competition underscores the strategic importance of digital assets. Success in this arena could provide PayPal (PYPL) with a new, high-margin revenue stream, potentially impacting its stock valuation positively if adoption accelerates. A key risk is regulatory intervention; if proposed U.S. stablecoin laws impose stringent capital requirements, it could curb the growth trajectory for all second-tier tokens like USAT. Current market positioning shows venture capital and crypto-native hedge funds accumulating positions in the infrastructure layer of digital payments, betting on multiple winners in the stablecoin space.
The primary catalyst for the entire stablecoin sector will be the final text and passage of the U.S. Stablecoin Act, which could be voted on before the end of 2026. Market participants should monitor the monthly attestation reports for USAT, watching for the composition of its reserves to ensure it meets proposed regulatory standards. Key levels to watch include the $500 million market cap threshold for USAT; a breach would signal it is gaining meaningful traction against PYUSD and RLUSD. The next earnings call for PayPal on July 24, 2026, will likely provide an update on PYUSD adoption metrics, offering a direct read on competitive dynamics. Regulatory announcements from the Office of the Comptroller of the Currency regarding national trust charters for crypto firms will also be critical.
Tether’s USDT is a globally-focused stablecoin, the largest by market capitalization, and is widely used on international crypto exchanges for trading and remittances. USAT is a newer, separate dollar-pegged token issued by Tether that is specifically tailored for the U.S. market, potentially adhering to different compliance standards aimed at satisfying forthcoming federal regulations. Its growth indicates a strategy to segment the market and capture demand from U.S. users and institutions seeking a Tether product with a stateside operational focus.
Stablecoin issuers generate revenue primarily through the interest earned on the reserve assets backing the tokens. For example, if a stablecoin is backed by U.S. Treasury bills and cash, the issuer earns the yield on those Treasuries. This creates a business model where scale is critical; a larger market cap means more assets under management and greater interest income. This revenue funds operations, profits, and initiatives to spur further adoption, such as integration incentives for exchanges.
Traditional financial firms like PayPal view stablecoins as a strategic entry point into the digital asset ecosystem. They offer a familiar product—a dollar peg—while enabling faster, cheaper settlement on blockchain networks compared to traditional systems. This allows companies to potentially disrupt cross-border payments, serve the growing crypto economy, and create new fee-based services. For a platform with PayPal’s vast user base, a native stablecoin also enhances user retention by creating a closed-loop payments environment.
Tether’s USAT demonstrates explosive growth from a small base, heating up competition in the race to issue the dominant digital dollar.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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