Wall Street’s Heavyweights Take Aim at Tether’s Crypto Throne

JPMorgan and banking rivals are mounting a coordinated assault on Tether’s stablecoin empire—because nothing unites old-money institutions like the scent of a digital cash grab.

The play? A joint challenge to USDT’s dominance, with all the regulatory firepower and backroom handshakes you’d expect from traditional finance. Because when crypto eats your lunch, the answer is always to build a shinier, bank-approved version.

Will it work? DeFi purists will scoff, but never underestimate Wall Street’s ability to repackage decentralization as a premium service—with fees attached.

How will this affect the stablecoin market?

Two giants, Tether’s USDT and Circle’s USDC, currently dominate the stablecoin market, which is currently worth $245.9 billion. Together, they control 87% of the market.

However, the entry of major banks could challenge this dominance, especially given their vast financial infrastructure and regulatory influence.

Paolo Ardoino, CEO of Tether, responded to the news with a brief yet pointed message on social media:

“Welcome player 2.”

His remark suggests confidence in Tether’s position as the market leader, implying that traditional banks are only now catching up to what crypto-native firms have built over the past decade.

Tether’s USDT remains the most traded stablecoin globally, with a market cap above $150 billion. Its usage spans cross-border payments, remittances, and digital commerce, especially in regions with limited access to the US dollar.

Meanwhile, BitMEX co-founder Arthur Hayes took a more critical view, suggesting the banks’ stablecoin initiative could spell trouble for Circle. He said:

“Bye bye Circle. Thanks for playing.”

Hayes’ comment implies that Circle might struggle with these institutions’ new LAYER of competition.

This comes as Circle explores strategic options, including a potential public listing or acquisition by firms like Coinbase or Ripple.