Tether’s USDT Overtakes USDC in BitPay Transactions by 70%

Tether’s USDT has made significant strides in the stablecoin transaction landscape on BitPay, overtaking Circle’s USDC in transaction volume and merchant preference. This shift marks a notable reversal from the previous year, where USDC held a dominant position. Despite USDC’s regulatory advantages under the EU’s MiCA framework and its successful public market debut, USDT has surged in both transaction volume and merchant preference on BitPay.

According to BitPay’s chief revenue officer Bill Zielke, the growing preference for USDT among merchants and customers is reshaping stablecoin usage trends on the platform. BitPay’s 2025 data shows that Tether’s USDT has overtaken USDC in stablecoin transactions and volume, highlighting shifting market dynamics despite regulatory advantages for USDC. In early 2025, USDT captured 43% of transactions by May, nearly closing the gap with USDC, which had an 85% transaction share in January 2024. More strikingly, USDT now accounts for over 70% of stablecoin payment volume processed by BitPay, signaling a strong merchant and consumer shift toward Tether’s token.

This trend reflects not only an increase in overall stablecoin transactions but also a strategic preference among BitPay’s sizable user base. The growing adoption of USDT on BitPay can be attributed to several factors. First, USDT’s broad acceptance and liquidity in the crypto ecosystem make it a preferred choice for merchants seeking stable and reliable payment options. Additionally, the platform’s expansion in the United States has exposed a diverse user base to USDT’s benefits, including faster settlement times and widespread exchange support.

BitPay’s data suggests that existing merchants and customers are increasingly favoring USDT for its transactional efficiency and market familiarity. This shift occurs despite USDC’s regulatory compliance advantages under the European Union’s Markets in Crypto-Assets Regulation (MiCA), which theoretically should bolster its adoption among institutional users. Circle’s USDC has positioned itself as a regulatory-compliant stablecoin, becoming the first to receive approval under the EU’s MiCA framework in July 2024. This milestone was expected to enhance USDC’s credibility and adoption, especially in regulated markets. Furthermore, Circle’s successful public offering in June 2025, raising over $1 billion, signaled strong investor confidence in USDC’s growth trajectory.

Conversely, Tether has taken a contrasting approach by rejecting MiCA compliance and declining to pursue a public listing. CEO Paolo Ardoino has openly criticized aspects of MiCA regulation, maintaining a more decentralized and flexible operational model. Despite this, Tether’s USDT continues to dominate payment volumes on BitPay, underscoring that regulatory approval is not the sole determinant of market preference. Market capitalization data further illustrates the competitive dynamics between USDC and USDT. Over the past year, USDC’s market cap surged approximately 88%, rising from $33 billion to $61.7 billion, reflecting robust growth and investor interest. Meanwhile, USDT’s market cap increased by 40%, from $112.5 billion to $158.3 billion, maintaining its position as the largest stablecoin by market value.

Year-to-date figures reinforce this trend, with USDC’s market cap growing 41% compared to USDT’s 15.5% increase. These metrics highlight USDC’s expanding footprint despite the transactional momentum favoring USDT on payment platforms like BitPay. The evolving stablecoin landscape on BitPay underscores a nuanced competition between USDC and USDT, where regulatory compliance and market adoption intersect but do not always align. While USDC benefits from MiCA approval and strong market cap growth, USDT’s dominance in transaction volume and merchant preference signals its entrenched position in crypto payments. Stakeholders should monitor these trends closely as the stablecoin market continues to mature and adapt to regulatory and user demands.