USDC overtakes USDT in euro stablecoin trading as EU rules reshape the market: Kaiko

Circle’s USDC has moved ahead of Tether’s USDT in euro-denominated stablecoin trading, and the reason is not mysterious: European exchanges are adjusting to Markets in Crypto-Assets Regulation (MiCA), and liquidity is following the compliant paper trail. For PSPs and crypto venues serving the European Economic Area, this is a reminder that stablecoin market share can change quickly once the regulator starts drawing the lanes.

1. USDC now accounts for 56% of stablecoin trading against the euro, up from just 10% in January 2024, according to Kaiko data. Kaiko said the shift accelerated after major exchanges restricted USDT trading for customers in the European Economic Area under MiCA.
2. USDC has also overtaken USDT in euro-denominated trading liquidity. Kaiko said USDC order books are now roughly 40% deeper than USDT’s, which matters because deeper books usually mean less slippage for entrants and exits at the euro on-ramp and off-ramp.
3. Tether is still larger globally, with a circulating supply about 2.5 times that of USDC. So this is not a global crown transfer; it is a Europe-specific trading and distribution shift shaped by regulation.
4. Kaiko described stablecoin-to-euro pairs as a “main on-ramp and off-ramp for European customers,” which is the practical bit PSPs care about: these pairs sit at the point where fiat rails meet crypto flow, so exchange policy changes can move real volume fast.
5. The report comes about two weeks after the European Banking Authority designated USDC as the EU’s first “significant e-money token” under MiCA. That classification puts the stablecoin under direct EBA supervision and subjects its issuer to additional regulatory requirements.

Kaiko also drew a line from Europe to the US. It said American stablecoin regulation under the GENIUS Act could produce a similar rotation in trading activity, especially after the Office of the Comptroller of the Currency issued its first final rule under the law on Oct. 21. That rule sets reserve and redemption requirements for stablecoin issuers under its supervision and takes effect on Jan. 18, 2027. Starting in July 2028, US platforms will also face restrictions on offering stablecoins from issuers that do not meet the law’s approval requirements.

For market participants, the takeaway is straightforward: Circle has chosen the authorization-heavy path in both Europe and the US, while Tether has responded by launching USAT for the US market. That split now has a visible trading footprint in Europe, and it may not stay there.