Tether's USDT Surpasses USDC in Payment Volume on BitPay

In 2025, Tether's USDT has made significant inroads against Circle's USDC on the major payment platform BitPay. This shift is evident in the transaction volume data, which shows a narrowing gap between the two stablecoins. In January 2024, USDC held a dominant 85% share of transactions on BitPay, with USDT accounting for only 13%. However, by May 2025, USDC's share had decreased to 56%, while USDT's share increased to 43%.

This change in dynamics is noteworthy, especially considering the regulatory advantages that USDC holds over USDT, particularly in the European Union under the Markets in Crypto-Assets Regulation (MiCA). Despite Circle's public launch in early June and the regulatory benefits, USDC has seen a decline in its transaction share on BitPay. This trend suggests that factors beyond regulatory compliance are influencing the preferences of merchants and customers on the platform.

Tether's USDT has not only narrowed the gap in transaction count but has also surpassed USDC in payment volume. According to BitPay, starting in March 2025, USDT accounted for over 70% of the stablecoin volume processed by the platform. This shift can be attributed to both an overall increase in stablecoin transactions and a preference among existing merchants and customers for USDT over USDC.

BitPay's chief revenue officer, Bill Zielke, noted that while USDC remains the most popular stablecoin by transaction count, its dominance has significantly decreased in 2025. The platform, which has a substantial user and merchant base, is also focused on expanding its presence in key markets. This strategic focus on growth in key markets may contribute to the changing dynamics between USDT and USDC on the platform.

Tether's leading position in payment volumes and its rising dominance in transaction count on BitPay offer insights into the competitive landscape between stablecoins. Despite Circle's regulatory approval under MiCA and its public launch, Tether has maintained a critical stance on certain aspects of the regulation and has no plans for an initial public offering. This approach contrasts with Circle's strategy, which includes seeking regulatory compliance and public trading.

The shift in preferences on BitPay highlights the evolving nature of the stablecoin market, where factors such as user and merchant preferences, regulatory environments, and market dynamics play crucial roles. As the competition between USDT and USDC continues, it will be interesting to observe how these factors influence the market share and transaction volumes of these stablecoins in the coming years.