Stablecoin News – On July 7, 2025, Tether’s USDT surpassed Circle’s USDC in transaction volume on BitPay, a leading cryptocurrency payment platform, marking a significant shift in stablecoin dominance. USDT’s rise comes despite its decision to forgo compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation, which has favored USDC due to its regulatory alignment. This development highlights Tether’s enduring market strength, with its market cap reaching $156 billion, compared to USDC’s $61.75 billion.
USDT’s lead in BitPay volumes reflects its widespread adoption in global payments and trading, driven by its liquidity and availability across platforms like Binance and Stablechain, a Layer 1 blockchain launched in June 2025 that uses USDT as its native gas token. Stablechain’s low-cost, high-speed infrastructure has further boosted USDT’s utility, offering sub-second transaction finality and fees under one cent. Tether’s revenue, derived from interest on U.S. Treasuries backing USDT, reached $593 million in the past 30 days, per DeFiLlama data, underscoring its financial dominance.
However, Tether’s MiCA non-compliance raises concerns about its long-term viability in Europe, where stricter regulations prioritize transparency and reserve audits. USDC’s 29-fold trading volume increase in Europe, driven by MiCA, positions it as a preferred institutional choice.
USDC’s 83.85% dominance on the Sei network, suggesting it retains strong niche markets despite Tether’s broader lead. Tether’s past controversies over reserve transparency also linger, with critics questioning its centralized control compared to USDC’s audited reserves.
The competition between USDT and USDC reflects broader stablecoin dynamics, where trust, regulatory compliance, and use case versatility determine market share. While Tether’s volume surge on BitPay signals its current edge, USDC’s regulatory alignment may offer a strategic advantage as global oversight tightens.
