Circle’s USDC has overtaken Tether’s USDT in euro-denominated stablecoin trading, capturing 56% of the market as European Union regulations increasingly favor compliant digital assets over restricted alternatives.
The shift represents a dramatic reversal from January 2024, when USDC held just 10% of euro stablecoin trading volume. According to Kaiko, a data analytics firm, USDC order books are now 40% deeper than USDT’s in euro-denominated trading pairs, which Kaiko describes as the “main on-ramp and off-ramp for European customers.”
MiCA Enforcement and Exchange Restrictions
The market rebalancing stems directly from the EU’s Markets in Crypto-Assets Regulation, or MiCA, which major European exchanges have used to restrict USDT trading for European Economic Area customers. The European Banking Authority designated USDC as the EU’s first “significant e-money token” under MiCA, placing it under direct EBA supervision and establishing it as the bloc’s regulatory standard for stablecoins.
Tether’s USDT remains the world’s largest stablecoin by circulating supply, which stands at 2.5 times USDC’s supply. Despite this scale advantage, Tether has pursued a divergent regulatory strategy by launching USAT, a separate US-focused stablecoin, rather than pursuing authorization under emerging US frameworks.
US Regulatory Developments
The EU’s regulatory approach parallels emerging US stablecoin oversight. The Office of the Comptroller of the Currency issued its first final rule under the GENIUS Act on October 21, establishing a federal framework for stablecoin issuers. Reserve and redemption requirements under that rule take effect January 18, 2027. US platforms face restrictions on non-approved stablecoins beginning July 2028.
Circle has positioned USDC to comply with both frameworks, contrasting with Tether’s strategy of developing separate products for different jurisdictions. The euro market shift demonstrates how regulatory designation directly influences trading infrastructure and customer access in major fiat-to-crypto corridors.
