USDC overtakes USDT in euro stablecoin trading, Kaiko says

Circle's USDC has overtaken Tether's USDT as the main stablecoin traded against the euro, a sign of how far the EU's crypto rules have reshaped Europe's market. USDC now accounts for 56% of stablecoin-to-euro trading, up from just 10% in January 2024, according to a new report from data provider Kaiko, Cointelegraph reports.

What Kaiko found

• Market share: USDC's share of euro stablecoin trading rose from about a tenth to more than half in under three years.
• Liquidity: USDC's euro order books are now roughly 40% deeper than USDT's, meaning larger trades can go through with less price impact.
• The trigger: the shift sped up after big exchanges restricted USDT trading for customers in the European Economic Area under the Markets in Crypto-Assets Regulation, MiCA. Circle holds an EU e-money licence for USDC; Tether has not sought MiCA authorisation for USDT.
• The bigger picture: worldwide, Tether still dominates, with a circulating supply about 2.5 times that of USDC.

Kaiko describes stablecoin-euro pairs as a "main on-ramp and off-ramp" for European users, who swap euros into dollar stablecoins to enter crypto markets and back again to leave. If you are weighing the two tokens, our USDT vs USDC comparison covers reserves, chains and redemption.

Regulators keep tightening

The report comes about two weeks after the European Banking Authority named USDC the EU's first "significant" e-money token, which puts it under direct EBA supervision alongside France's ACPR and adds extra requirements for Circle.

Kaiko expects the United States could follow a similar path under the GENIUS Act. On 21 October the Office of the Comptroller of the Currency issued its first final rule under the law, setting reserve and redemption standards for the stablecoin issuers it supervises from 18 January 2027. From July 2028, US platforms will also face limits on offering stablecoins from issuers that are not approved under the law.

What it means

Circle has pursued licences on both sides of the Atlantic, which positions USDC to benefit. Tether has taken a different route, launching a separate US-focused stablecoin, USAT, while USDT keeps its lead in Asia, emerging markets and offshore trading.