JPMorgan has reported that Circle’s USDC stablecoin has overtaken Tether’s USDT in terms of on-chain activity in 2025, marking a significant shift within the stablecoin market. This development comes as USDC’s market capitalization soars by 72% this year, reaching nearly $76 billion, compared to USDT’s 32% growth. The surge in USDC’s adoption is largely attributed to new regulatory clarity, particularly from Europe’s Markets in Crypto-Assets (MiCA) framework, which has set clear standards for stablecoins and came into effect in mid-2024.

USDC’s growing success is linked to its commitment to regulatory compliance and transparency. The stablecoin regularly undergoes audits and maintains fully backed reserves, making it especially appealing to institutional investors and exchanges that now prioritize assets meeting emerging regulatory requirements. Meanwhile, Tether has lost ground due to its lack of MiCA authorization, leading to its removal from several European trading platforms and raising concerns about its regulatory standing.

Institutional adoption of USDC continues to gain momentum as platforms and investors seek stability and security in digital assets, further cementing USDC’s leading role in on-chain stablecoin transactions. The market’s clear preference for regulated and transparent stablecoins underscores a new era of accountability and trust in the crypto ecosystem.

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