- Tether (USDT) and Circle (USDC) together account for over $210 billion in the stablecoin market.
- Tether holds the majority share, with about $150 billion in market capitalization.
- Tether reported $13 billion in profits for 2024, while Circle reported $156 million.
- Tether invests its reserves more aggressively, including assets such as corporate bonds and Bitcoin, compared to Circle’s conservative approach.
- Stablecoin regulations remain under discussion in the U.S. Senate and House, focusing on the GENIUS and STABLE Acts.
Tether (USDT) and Circle (USDC) are the largest stablecoins in the world by market capitalization, currently totaling more than $210 billion. Tether leads the sector, making up about $150 billion of the combined market value.
According to recent reports, Tether generated $13 billion in profit in 2024, while Circle reported a much smaller figure of $156 million. This difference in earnings is tied to the way each company manages their reserves and risk.
Circle keeps about $5.8 billion in cash, compared to Tether’s $64 million, which shows that Circle prefers high liquidity and a more cautious approach. Tether relies on access to credit to manage redemptions and includes various investments in its reserves, such as secured loans, corporate bonds, bitcoin, non-U.S. treasury bonds, precious metals, and other assets.
Both companies rely heavily on U.S. Treasury securities and overnight reverse repurchase agreements—types of short-term investments. However, Circle maintains a larger percentage of its reserves in these conservative investments compared to Tether.
Recently, the regulation of stablecoins has become a significant topic in U.S. politics. The GENIUS Act is under debate in the Senate, while the House is considering the STABLE Act. Both focus on how to supervise and oversee stablecoin companies and protect investors.
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