Tether Launches USA₮ Stablecoin, Potentially Impacting Bank Deposits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9h ago
0mins
Source: Benzinga
- New Stablecoin Regulation: Tether launched USA₮ on Monday, a federally regulated stablecoin issued by Anchorage Digital Bank, designed to comply with the GENIUS Act, thereby securing market share previously held by USDT.
- Threat to Bank Deposits: Standard Chartered warns that stablecoins could drain approximately $100 billion from U.S. bank deposits, representing one-third of the current $301.4 billion stablecoin market cap, directly impacting banks' profitability.
- Regional Bank Risks: Analysis indicates that regional banks such as Huntington Bancshares, M&T Bank, Truist Financial, and CFG Bank face the highest risk due to their heavy reliance on deposits for profitability, with the growth of stablecoins exacerbating this pressure.
- Market Outlook: Kendrick projects that the stablecoin market will reach $2 trillion by the end of 2028, potentially leading to a loss of about $500 billion in deposits from developed-market banks, further intensifying structural challenges within the banking sector.
Analyst Views on CRCL
Wall Street analysts forecast CRCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRCL is 143.07 USD with a low forecast of 65.00 USD and a high forecast of 280.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
4 Hold
3 Sell
Moderate Buy
Current: 70.900
Low
65.00
Averages
143.07
High
280.00
Current: 70.900
Low
65.00
Averages
143.07
High
280.00
About CRCL
Circle Internet Group, Inc. is a global financial technology company. It operates as a platform, network, and market infrastructure for stablecoin and blockchain applications and the issuer of a United States dollar-denominated stablecoin, USDC and a euro-denominated stablecoin, EURC (collectively Circle stablecoins). It provides a stablecoin network and a range of blockchain-specific software infrastructure. Its product offerings include Stablecoins, Developer Services, Integration Services, and Tokenized Funds. Developer Services develops an array of developer-ready and enterprise-grade infrastructure services that developers can plug into their own applications. It connects and integrates products, such as USDC across blockchain networks. Its Tokenized Funds are regulated yield-bearing investments for collateral use in capital markets. It also offers liquidity services, which provides institutional minting, reserving, redemption, and foreign exchange services for Circle stablecoins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
