USDC overtakes USDT in euro stablecoin trading as EU rules reshape market: Kaiko
Circle's USDC takes lead in euro trading
Circle's USDC has overtaken Tether's USDT in trading against the euro, a new report from data firm Kaiko says. USDC now holds 56% of stablecoin trading pairs with the euro, up from just 10% in January 2024.
A stablecoin is a digital token tied to the value of a fiat currency like the US dollar, used to move in and out of other crypto assets. Kaiko says euro trading pairs are the main on-ramp and off-ramp for European customers swapping euros for dollar-backed tokens.
What the data shows
- USDC share of euro stablecoin trading rose to 56% from 10% in January 2024.
- USDC order books are roughly 40% deeper than USDT's in euro pairs, giving it more trading liquidity.
- The shift accelerated after major exchanges limited USDT access for customers in the European Economic Area.
- Tether remains larger overall, with a circulating supply about 2.5 times that of USDC.
How EU rules changed the game
The Markets in Crypto-Assets Regulation (MiCA) is the European Union's rulebook for crypto assets. It favors stablecoins that comply with EU licensing and supervision.
About two weeks before this report, the European Banking Authority named USDC the EU's first "significant e-money token" under MiCA. That classification puts the token under direct EBA supervision and adds regulatory requirements for its issuer, Circle.
US stablecoin rules may bring a similar shift
Kaiko says the US is moving toward similar stablecoin rules under the GENIUS Act. If American exchanges follow the same path as Europe, USDC trading could grow there too.
The Office of the Comptroller of the Currency issued its first final rules under the act on October 21, setting reserve and redemption requirements for stablecoin issuers it supervises, effective January 18, 2027. From July 2028, US platforms will be restricted from offering stablecoins from issuers that do not meet the law's approval requirements.
Circle has pursued authorization in both Europe and the US. Tether has taken a different route, launching a separate US-focused stablecoin called USAT.
Why this matters
Regulatory compliance appears to be shifting the balance between the two biggest dollar-backed tokens. When exchanges must choose compliant issuers, customers follow the available options. That means the winner of the regulatory race could also win the most trading activity.
What is still unclear
The report does not say when this trend might reverse, nor whether the US shift will happen as quickly as Europe's. It also does not explain how much of the change came from customer choice versus exchange restrictions.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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