Bridge Executive: The dominance of Tether and Circle is detrimental to the overall stability of stablecoins.

Crypto Mars News reports that, according to market sources, Ben O’Neill, the head of fund flows at Bridge, stated at the Consensus conference that the dominant positions of Tether and Circle in the stablecoin market are generally detrimental to the overall growth of the industry. He pointed out that each of these issuers has its own advantages and disadvantages based on their design choices, but they are not suitable for all use cases. Tether has built a dollar shadow economy independent of the U.S. financial system; meanwhile, Circle’s USDC follows a regulated U.S. route and is deeply involved in DeFi. O’Neill analyzed the shortcomings of these two companies from the perspective of large payment firms: Tether’s redemption fee of 10 basis points is too expensive for payment companies, while Circle’s continuous increase in burn fees is also a net negative for companies like Visa that aim to handle trillions of dollars in card settlements. He believes that in the coming years, more stablecoins should be built and optimized for specific use cases, and that the role of clearinghouses will rise to make exchanges between stablecoins as efficient as possible. He warned that more competition is needed; otherwise, Tether and Circle will only keep raising fees and not sharing profits, making stablecoins increasingly resemble less like money.