USDC's Institutional OTC Turnover Surges 2900% in 2025

In the first half of 2025, USDC, a stablecoin issued by Circle, demonstrated an extraordinary 29-fold increase in institutional over-the-counter (OTC) turnover, capturing 74.6% of the global institutional OTC market volume. This surge in USDC's adoption can be attributed to its compliance with regulatory frameworks such as the EU's MiCA and Canadian listing rules, which have positioned it as a trusted and transparent stablecoin in the market.

Circle's USDC has seen a significant rise in circulation, with a 78% year-over-year increase, leading to monthly transaction volumes reaching $1 trillion by late 2024. The company's successful public listing on the NYSE under the ticker "CRCL" further solidified its market position, with a market cap of $63 billion surpassing the active USDC in circulation. This growth has also driven increased activity within decentralized finance (DeFi), as USDC becomes a primary settlement asset across major blockchain networks like Ethereum.

Jeremy Allaire, Circle's CEO, highlighted the company's commitment to trust, transparency, and compliance, which have been key to their success. The robust regulatory measures and consistent compliance of USDC have bolstered institutional confidence, leading to greater global payment use and revenue upsurges for Circle. This adoption has resulted in a higher total value locked in DeFi protocols and a strategic advantage for Ethereum as a primary settlement network.

The growth of USDC in the institutional OTC market is part of a broader trend of stablecoins capturing a significant portion of the market. Stablecoins now account for 74.6% of all spot deals in the institutional OTC trading landscape, up from 46% in the previous year and 23% in 2023. This trend is driven by regulatory changes and market dynamics that favor stablecoins over other cryptocurrencies.

Despite the optimism surrounding stablecoins, there are concerns about systemic risks. As the number of stablecoin issuers grows, market fragmentation and risk escalate. A depegging event for one stablecoin could trigger a widespread run on issuers, amplifying systemic risk. The industry must address these risks to ensure the stability and sustainability of stablecoins.

In conclusion, USDC's remarkable growth in the first half of 2025 underscores its rising institutional adoption and increased regulatory compliance. The stablecoin's performance highlights its role as a core settlement and liquidity instrument within the cryptocurrency landscape, strengthening its position amid escalating market demands. However, the industry must continue to address the risks associated with market fragmentation and potential depeg events to ensure the long-term stability of stablecoins.