ARK Invest: USDT Network Effects Shield Dominance

ARK Invest argues USDT and USDC hold powerful stablecoin network effects built on liquidity, integrations and habit that OUSD cannot easily break. Cathie Wood amplified Lorenzo Valente’s thread showing consortium members face mismatched incentives and risk far larger revenue streams by switching quote assets. The Binance example proves the point: the exchange keeps $45B in USDT because its $17-20B annual trading business depends on that depth, not on chasing 3.8% T-bill yield. Past attempts by Circle to shift balances with incentives produced flat USDC supply, confirming the moat.