The battle for dominance in stablecoins has truly heated up this year.

First, Tether made a big move. They are preparing for a new round of financing, aiming for $20 billion, with a target valuation directly hitting 500 billion. This guy seems to want to use size advantage to firmly suppress USDC. Sounds aggressive, but looking deeper, the situation is much more complex.

Circle didn’t sit idly by. They made a major move—directly acquiring a public chain infrastructure company called Axelar. How significant is this acquisition? It instantly expands USDC’s blockchain coverage by eight times.

Why is this so critical? Because Axelar is essentially a universal connector in the blockchain world. Its cross-chain technology allows USDC to circulate freely across different blockchains, like a Type C port—compatible with Android, Apple, and various devices. This effectively addresses Circle’s biggest weakness before. USDC can be used as money on any chain, doubling its application scenarios.

More deeply, Circle isn’t just buying a technology; they’re also bringing in the entire R&D team, underlying architecture, and technical barriers. One acquisition, and they’ve packed in technology, talent, and a moat.

Another detail that’s easy to overlook: while USDC is expanding rapidly, its compliance is actually becoming stronger. Axelar’s built-in cross-chain risk control system acts like customs security checks, making it easier for Circle to meet global regulatory requirements. Institutional funds can use it with more confidence.

What about USDT? Since its inception, questions about compliance, reserves, and transparency have never stopped. Recently, S&P even downgraded it to the lowest rating.

Thinking carefully, it’s clear: USDT is raising funds, USDC is spending money. One relies on size, the other on infrastructure penetration. This isn’t just short-term market competition but the ultimate route race in the stablecoin world.

What’s your take on this game?