According to the latest report by Kaiko, Circle’s USDC has surpassed Tether’s USDT in EUR-stablecoin trading volumes, as EU regulation increasingly favors stablecoins compliant with regional rules.
According to Kaiko data, USDC currently accounts for 56% of stablecoin-to-euro trading volume, up from 10% in January 2024. This shift has accelerated further following major exchanges restricting USDT trading for customers in the European Economic Area under the Markets in Crypto-Assets Regulation (MiCA) framework.
USDC has also surpassed USDT in euro-denominated trading liquidity, with its order book depth currently about 40% deeper than that of USDT. However, Tether remains the larger stablecoin globally, with a circulating supply approximately 2.5 times that of USDC.
Kaiko refers to stablecoin-euro trading pairs as the "primary on- and off-ramp" for European customers, as these pairs allow users to convert euros into dollar-pegged stablecoins when entering or exiting the cryptocurrency market, and vice versa.
Kaiko’s finding was published approximately two weeks after the European Banking Authority (EBA) designated USDC as the EU’s first “significant electronic money token” under the MiCA framework. This classification means that USDC will be subject to direct oversight by the EBA, and its issuer will face additional regulatory requirements.
U.S. stablecoin regulations could shift the balance between Circle and Tether
Kaiko stated that the U.S. is pursuing a similar regulatory path for stablecoins under the GENIUS Act, increasing the likelihood of a similar shift in trading activity on U.S. exchanges as seen in Europe.
On October 21, the Office of the Comptroller of the Currency issued its first final rule under the law, establishing reserve and redemption requirements for stablecoin issuers under its supervision; the rule will take effect on January 18, 2027.
Starting in July 2028, U.S. platforms will also be restricted from offering stablecoins issued by parties that do not meet the legal approval requirements.
The report noted that these regulatory changes may benefit Circle, which has been pursuing licensing in both Europe and the United States. Tether, on the other hand, has taken a different approach by launching a standalone stablecoin, USAT, tailored for the U.S. market.