Circle’s USDC Overtakes Tether's USDT in Onchain Activity as Regulation Drives Shift: JPMorgan

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Circle’s USDC Overtakes Tether's USDT in Onchain Activity as Regulation Drives Shift: JPMorgan USDC leapfrogged USDT in onchain activity as regulatory clarity pushes investors toward transparent and compliant stablecoins. By Will Canny , AI Boost | Edited by Sheldon Reback Oct 30, 2025, 11:40 a.m. Circle’s USDC overtakes USDT in onchain activity as regulation drives shift: JPMorgan. (Unsplash, modified by CoinDesk) What to know : JPMorgan said Circle Internet’s USDC overtook Tether’s USDT in onchain activity as investors favored regulated, transparent stablecoins. USDC’s market cap jumped 72% this year to $74 billion, more than double USDT’s 32% rise, driven by MiCA compliance and institutional adoption. While USDT still leads in emerging markets, JPMorgan said USDC’s regulatory model could set the standard for global stablecoin growth. Circle Internet’s (CRCL) USDC overtook Tether’s USDT in onchain activity, Wall Street bank JPMorgan (JPM) said, as investors and institutions moved to adopt stablecoins that met emerging regulatory standards. The bank noted that USDC’s market capitalization has surged 72% this year to $74 billion, outpacing USDT’s 32% rise. That reflects a shift toward assets with greater transparency and compliance, it said. USDT remains the largest stablecoin, with a market cap more the double the second-ranked USDC. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . The Wednesday report attributed the divergence to regulatory clarity, particularly Europe’s Markets in Crypto-Assets (MiCA) framework, which took effect in mid-2024. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing a payment infrastructure, and are also used to transfer money internationally. USDT’s lack of MiCA authorization led to its removal from several European exchanges, while USDC’s regulatory compliance, transparent reserves and regular audits strengthened its appeal among institutional users, analysts led by Nikolaos Panigirtzoglou wrote. USDC’s on-chain velocity also climbed, boosted by growth on Solana and Base, two blockchains driving decentralized finance (DeFi) activity, and by integration with payment giants Visa (V), Mastercard (MA) and Stripe, the analysts said. Partnerships with e-commerce and Web3 platforms and Circle’s Cross-Chain Transfer Protocol have further enhanced its efficiency for payments and settlements. While USDT remains dominant in emerging markets as the leading trading pair on exchanges, JPMorgan said USDC’s regulated model could set the global standard for future stablecoin development, challenging Tether’s long-standing lead. Read more: Investment Bank Mizuho Says Visa Is Becoming the ‘Stablecoin of Stablecoins’ Circle USDC Tether USDT JPMorgan AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You OwlTing: Stablecoin Infrastructure for the Future By CoinDesk Research Oct 16, 2025 Commissioned by OwlTing Stablecoin payment volumes have grown to $19.4B year-to-date in 2025. OwlTing aims to capture this market by developing payment infrastructure that processes transactions in seconds for fractions of a cent. 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