- USDC grew faster than USDT in 2025, driven by demand for regulated, blockchain-based dollars.
- USDC rose 73% to $75.12 billion; USDT rose 36% to $186.6 billion.
- Institutional adoption and regulatory compliance, including Europe’s MiCA framework, favored USDC.
- Circle Internet holds U.S. money-transmission licenses, a New York virtual currency license, and e-money permissions in Europe.
- USDC and USDT together represent over 80% of the $312 billion stablecoin market.
Circle Internet‘s dollar-pegged stablecoin USDC outpaced rival USDT in 2025 as demand rose for regulated, blockchain-based dollars in the United States. Data show USDC increased 73% to $75.12 billion while USDT grew 36% to $186.6 billion. The shift came amid greater U.S. government acceptance of digital assets and rising institutional use.
Circle Internet, founded by Jeremy Allaire and Sean Neville, went public on the New York Stock Exchange last June. The company backs USDC with cash and short-term U.S. Treasuries held at regulated institutions and holds money-transmission licenses across U.S. states plus a virtual currency license in New York.
In Europe, Circle operates under e-money licenses and complies with the Markets in Crypto-Assets framework. Tether, founded in 2014 and led by Paolo Ardoino, remains unregulated in the U.S. and Europe and operates as a licensed digital asset service provider in El salvador.
Institutional demand has favored regulated tokens. “USDC’s transparent reserve management and regular audits make it more trustworthy among institutional investors and other regulated entities,” analysts at JPMorgan said in a note. “Additionally, its compliance with frameworks like the Markets in Crypto-Assets (MiCA) regulation in Europe sets it apart from competitors, making USDC the preferred stablecoin for financial institutions,” they added.
Major firms including VISA, Mastercard and BlackRock have integrated or preferred USDC for settlement and treasury uses. Together, USDC and USDT account for more than 80% of the $312 billion stablecoin market, leaving limited market share for other tokens.
An analyst at FRNT Financial noted the market outlook and adoption trends. “Treasury Secretary Scott Bessent has repeatedly stated that the stablecoin market could grow to USD 3.7T by the end of the decade. In this context, it remains to be seen whether stablecoin growth will remain confined to USDt and USDC, or will expand meaningfully to other tokens,” they said. “Nevertheless, crypto proponents are optimistic that stablecoin proliferation will bring new capital and users into the crypto ecosystem in 2026,” they added.
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