Stablecoin Transactions Rose to Record $33 Trillion, Led by USDC

Stablecoin transactions hit a record $33 trillion in 2025, according to Artemis Analytics. The surge in volume was largely driven by USDC, which accounted for $18.3 trillion in transactions. This marks a 72% increase compared to the previous year.

Circle's USDC experienced a 73% growth in market capitalization in 2025, reaching $75.12 billion. In contrast, Tether's USDT grew by 36% to $186.6 billion. This continued the trend from 2024, when USDC outperformed USDT for the second straight year.

The growing adoption of USDC is being attributed to favorable regulatory developments under the Trump administration. The Genius Act, passed in July 2025, created a legal framework for stablecoins, encouraging institutional participation and broader market use.

Why Did This Happen?

Regulatory clarity was a major factor in USDC's growth. The U.S. and European Union introduced frameworks that provided greater confidence in regulated stablecoins like USDC. Circle's emphasis on compliance, including monthly reserve attestations, helped build trust among institutional investors.

Institutional adoption also played a role. Traditional financial entities, including major corporations and payment processors, integrated USDC into their systems. This expanded its use beyond cryptocurrency exchanges to cross-border payments and treasury management.

Blockchain infrastructure improvements also supported USDC's adoption. Layer-2 scaling solutions on Ethereum and other chains like Solana and Avalanche reduced transaction costs and made USDC more accessible for everyday use.

How Did Markets Respond?

The surge in USDC transactions reflects a broader shift toward digital dollars in global finance. Ethereum alone accounted for $8 trillion in stablecoin transfers in the fourth quarter of 2025, showing the network's role as a settlement layer.

Visa also reported a 525% increase in crypto card spending in 2025. Much of this spending was facilitated by stablecoins, indicating growing acceptance of digital assets in everyday transactions.

The rise of regulated stablecoins has also prompted competition in the market. USDT remains the largest stablecoin by market cap, but USDC's faster growth suggests a shift in preference toward transparency and compliance.

What Are Analysts Watching Next?

Market analysts are closely watching how regulatory changes in 2026 might affect the growth of stablecoins. Clear frameworks are expected to benefit compliant issuers like Circle, while ambiguous regulations could slow adoption.

Institutional investors are also exploring how to integrate regulated stablecoins into their portfolios. Financial institutions are developing structured products and services around stablecoins, which could further drive adoption.

The competition between regulated and unregulated stablecoins is expected to continue shaping the market. As more jurisdictions establish frameworks, the trend toward transparency and compliance may become more pronounced.

Overall, the record transaction volumes and growth of regulated stablecoins highlight the evolving role of digital assets in the global financial system. The increasing use of stablecoins in cross-border payments and DeFi suggests they are becoming a key component of the digital economy.