USDC Leads USDT in Euro Stablecoin Trading

Circle’s USDC has overtaken Tether’s USDT in stablecoin trading against the euro. USDC accounted for 56% of the market, up from 10% in January 2024, according to Kaiko data.

The shift accelerated after major exchanges restricted USDT trading for customers in the European Economic Area to comply with the European Union’s Markets in Crypto-Assets Regulation, or MiCA.

USDC also has deeper euro trading liquidity. Its order books are about 40% deeper than USDT’s, leaving more buy and sell orders available for traders exchanging either token against the euro.

Stablecoin-to-euro pairs are a main way for European customers to exchange euros for dollar-pegged tokens when entering or leaving cryptocurrency markets.

The European Banking Authority designated USDC as the EU’s first “significant e-money token” under MiCA. The classification places USDC under direct EBA supervision and adds requirements for Circle, its issuer.

Tether remains the larger stablecoin worldwide. Its circulating supply is about 2.5 times that of USDC, despite USDC’s larger share of euro-based trading.

The United States’ GENIUS Act sets requirements for stablecoin reserves and redemptions. On Oct. 21, the Office of the Comptroller of the Currency issued its first final rule under the law. The rule applies to issuers supervised by the agency and takes effect on Jan. 18, 2027.

Starting in July 2028, US platforms will be restricted from offering stablecoins issued by companies that do not meet the law’s approval requirements. Circle has sought authorization in the European Union and the United States. Tether has launched a separate US-focused stablecoin called USAT.