Circle’s USDC has become the leading stablecoin traded against the euro, gaining ground on Tether’s USDt as European exchanges adjust to the European Union’s Markets in Crypto-Assets Regulation, or MiCA. According to Cointelegraph, research from Kaiko shows that USDC represented 56% of euro-denominated stablecoin trading, compared with 10% in January 2024.
USDC gains ground in euro markets
The change has accelerated as major cryptocurrency exchanges have restricted USDT trading for customers in the European Economic Area. Those limits have shifted activity toward stablecoins that fit within the EU’s regulatory framework.
USDC has also moved ahead of USDT in euro-denominated market liquidity. Kaiko said USDC order books are now about 40% deeper than those for its rival. Deeper order books generally indicate that more buy and sell orders are available near the current market price, which can support the execution of larger trades with less market impact.
Stablecoin-to-euro pairs are important to European crypto users because they provide a route between traditional currency and digital assets. Traders can exchange euros for dollar-pegged stablecoins when entering cryptocurrency markets, and reverse that process when leaving them.
The shift in European trading is notable because Tether remains the larger stablecoin worldwide. Its circulating supply is approximately 2.5 times that of USDC, according to the source material. The European figures therefore point to a change in regional trading preference rather than a global reversal in stablecoin size.
MiCA puts compliance at the center
The developments follow the European Banking Authority’s designation of USDC as the EU’s first “significant e-money token” under MiCA. That classification places the stablecoin under direct EBA supervision and brings additional regulatory requirements for its issuer.
MiCA is the EU’s regulatory framework for crypto-assets. For stablecoins, compliance can affect whether exchanges are able to offer a token to customers in the bloc and how issuers operate in the market. The restrictions on USDT trading in the European Economic Area have consequently created an advantage for tokens that meet the relevant requirements.
US rules could influence the next shift
Kaiko said a similar competitive dynamic could emerge in the United States under the GENIUS Act. On Oct. 21, the Office of the Comptroller of the Currency issued its first final rule under that law, setting reserve and redemption requirements for stablecoin issuers under its supervision. The rule is scheduled to take effect on Jan. 18, 2027.
US platforms will face further restrictions from July 2028 on offering stablecoins issued by companies that do not meet the law’s approval requirements. Circle has pursued authorization in both Europe and the US, while Tether has taken a different route by launching a separate US-focused stablecoin called USAT.
Moneyiar market picture
Moneyiar data recorded at 22:38 on Oct. 25, 2026, showed USDT at $0.9987425383, down 0.01% over seven days and unchanged over 24 hours. USDC stood at $0.9998375755, also down 0.01% over seven days and unchanged over 24 hours. The figures reflect the near-dollar trading objective of both stablecoins, while the reported market-share and liquidity changes concern euro trading activity.
