Circle’s Regulated USDC Beats Tether’s USDT Growth Two Years in Row

TLDR

• Circle USDC recorded a 73% market cap growth in 2025, reaching $75.12 billion.
• Tether’s USDT grew by 36% in 2025, ending the year with a market cap of $186.6 billion.
• USDC has outpaced USDT in growth for the second consecutive year based on CoinDesk market data.
• Circle is regulated in the U.S. and Europe and operates under the MiCA and GENIUS Act frameworks.
• Institutional partners such as Visa, Mastercard, and BlackRock actively use USDC in settlements.

Circle USDC extended its yearly growth lead over Tether’s USDT for a second consecutive year, driven by regulatory confidence, increased institutional use, and broader adoption across payment networks, according to market data compiled by CoinDesk and industry sources.

Circle’s USDC Sees 73% Growth Backed by Regulation and Trust

Circle USDC expanded its market capitalization by 73% in 2025, reaching $75.12 billion, while Tether’s USDT rose by 36% to $186.6 billion.

This continued a trend from 2024 when USDC grew 77% compared to USDT’s 50%, sustaining USDC’s relative outperformance in two straight years.

Market analysts attribute USDC’s momentum to compliance with U.S. and European regulations and increasing institutional demand for transparency.

Circle, headquartered in New York and listed on the NYSE since June 2025, issues USDC with backing from cash and short-term U.S. Treasuries.

The company holds money transmission licenses in several U.S. jurisdictions and operates under the MiCA regulation in Europe.

“USDC’s transparent reserve management and regular audits make it more trustworthy among institutional investors,” JPMorgan analysts wrote in October.

The U.S. government passed the GENIUS Act to regulate payment stablecoins, encouraging institutions to adopt fully compliant digital dollar tokens.

Circle USDC has since gained traction among global firms for settlement use, including partnerships with Visa, Mastercard, and BlackRock.

Tether’s USDT Grows, But Lags in Regulatory Approval

Tether’s USDT remains the largest stablecoin by market capitalization but lacks licenses in the U.S. and Europe as of 2025.

The company operates from El Salvador, where it is a licensed digital asset service provider, according to public filings and statements.

Founded in 2014, Tether did not comment on its performance or regulatory positioning when approached by CoinDesk for clarification.

Though USDT grew by 36% last year, its growth rate slowed compared to the 50% increase recorded in 2024, the data shows.

USDT continues to dominate emerging markets but has seen fewer institutional integrations due to the absence of transparent reserve audits.

Circle USDC gained market share due to its alignment with financial rules, according to multiple analysts monitoring the stablecoin space.

Visa and Mastercard selected USDC for select treasury operations, and BlackRock also began using the token in pilot settlements.

USDT still holds a broader global user base, but institutions appear to prefer compliance-focused assets, sources said.

Regulatory Momentum Supports USDC Expansion

The GENIUS Act created a legal structure for payment stablecoins, boosting interest in compliant tokens such as Circle USDC in 2025.

European regulators also enforced the MiCA framework, pushing firms to favor stablecoins that meet disclosure and operational standards.

Circle reported it complies with e-money licensing rules in European countries and publishes reserve attestations monthly for transparency.

“Treasury Secretary Scott Bessent has stated the stablecoin market could grow to $3.7 trillion by 2030,” a FRNT Financial analyst said.

Currently, USDC and USDT together represent over 80% of the stablecoin market’s total value, estimated at $312 billion.

USDC’s regulated structure made it the preferred choice for institutional flows, and it is used in more cross-border payments.

Crypto firms expect stablecoin growth to continue in 2026 as banks explore tokenized dollars for settlements and corporate use cases.

For now, market share remains concentrated in the hands of Circle USDC and Tether’s USDT, with smaller tokens struggling to gain ground.

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