USDC Surpasses USDT as MiCA Compliance Reshapes Stablecoin Landscape

Circle's USDC has surpassed Tether's USDT in onchain activity, driven by regulatory clarity and institutional adoption, according to a JPMorgan report, as detailed by Coindesk. The bank noted that USDC's market capitalization surged 72% this year to $74 billion, outpacing USDT's 32% growth. This shift reflects a broader market preference for stablecoins with transparent reserve management and compliance with frameworks like the EU's Markets in Crypto-Assets (MiCA) regulation, which took effect in July 2024.

The MiCA framework has accelerated USDC's adoption, particularly in Europe, where Circle's stablecoin gained momentum after securing regulatory approval. USDC's compliance with MiCA contrasts with USDT's lack of authorization under the same rules, which led to delistings on major exchanges post-regulation rollout. Meanwhile, USDC's integrations with payment networks like Visa and Mastercard, along with its Cross-Chain Transfer Protocol (CCTP), have enabled seamless cross-chain transactions and expanded its utility in decentralized finance ecosystems, according to TradingView.

Circle's strategic partnerships further underscore its dominance. The firm recently collaborated with ClearBank, a UK-based regulated bank, to expand access to MiCA-compliant stablecoins like USDC and EURC in Europe. The partnership aims to bridge traditional banking infrastructure with blockchain technology, enabling real-time cross-border payments. ClearBank CEO Mark Fairless highlighted that combining its regulated framework with Circle's blockchain solutions could redefine financial settlements globally, according to a Market Periodical article.

The collaboration has already impacted Circle's stock performance, with shares surging from $92 to $146 following the announcement. Investors view the partnership as a catalyst for revenue growth and broader adoption of stablecoin-based payments. Circle's market capitalization now stands at $33.45 billion, reflecting renewed institutional confidence in its regulatory-aligned approach, the Market Periodical reported.

While USDT remains dominant in emerging markets and centralized exchanges, JPMorgan analysts argue that USDC's regulatory edge positions it as a model for global stablecoin growth. The firm's growth trajectory—bolstered by MiCA compliance, institutional trust, and strategic integrations—highlights a pivotal shift in the stablecoin landscape as regulatory frameworks mature, Coindesk reported.