USDT and USDC Maintain Hegemony Despite New Initiatives

The hegemony of stablecoins USDT and USDC is challenged by new projects like Open USD (OUSD), which is backed by a consortium of 150 companies. Lorenzo Valente argues that OUSD's ability to dethrone established stablecoins is overestimated. The dominance of USDT and USDC is supported by factors such as deep liquidity, acceptance as collateral, integration into protocols, and brand recognition. The network effects that sustain these currencies are not only the result of corporate partnerships but also of a more organic market dynamic. The dependence of platforms on USDT and USDC makes it difficult to disrupt this hegemony. OUSD, while attractive, faces the challenge of integrating into an already consolidated market, where resistance to change is strong.

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