USDC Surpasses USDT as Dominant Euro‑Denominated Stablecoin Amid MiCA‑Driven Shift

Circle’s USDC has overtaken Tether’s USDT in euro‑stablecoin trading, now making up 56% of such trades versus 10% in January 2024, according to Kaiko data. The rise accelerated after major exchanges restricted USDT for European Economic Area customers under the Markets in Crypto‑Assets Regulation (MiCA). USDC also holds deeper liquidity, with order books roughly 40% deeper than USDT’s. While Tether remains the larger stablecoin globally, the EU’s designation of USDC as a “significant e‑money token” places it under direct European Banking Authority supervision, potentially giving it a regulatory advantage. The shift mirrors similar U.S. regulatory moves under the GENIUS Act, which could further tilt trading activity toward USDC on American exchanges.