It feels like this is a double-edged sword project for them.
If it doesn't work out, they will be left alone with their own network. Cryptocurrency users could still find a new stablecoin to support that uses different networks. I think that's the strength of USDT and USDC, the flexibility of usage in different networks.
I'm tired of all the wallets and all the chains already. We have way too many. I don't want more layer 1s, more wallets, more bookmarks. It complicates the whole space. What USDT has going for it is its history and reputation, it is widely available on many chains. However, this can change with the emergence of new stablecoins under recent regulations especially if they make this move.
If they will continue this, I am not so sure where it will go. So, they are risking a lot here and I do wish they went through deep analysis before they make a big decision.
Forget about analysis. Most are just thinking through greed.