USDC Takes Europe’s Euro Crown as MiCA Sends USDT Packing

Circle’s USDC (USDC) has overtaken Tether’s USDt (USDT) in stablecoin trading against the euro, accounting for 56% of activity, up from just 10% in January 2024, according to a new Kaiko report. USDC’s euro-denominated order books are now roughly 40% deeper than USDT’s, although Tether’s USDT remains larger globally with a circulating supply about 2.5 times that of USDC.

The shift accelerated after major exchanges restricted USDT trading for customers in the European Economic Area under the Markets in Crypto-Assets Regulation (MiCA). Kaiko described stablecoin-to-euro trading pairs as a “main on-ramp and off-ramp for European customers,” allowing users to exchange euros for US dollar-pegged stablecoins when entering or exiting cryptocurrency markets.

The findings came about two weeks after the European Banking Authority designated USDC as the EU’s first “significant e-money token” under MiCA, a classification that places the stablecoin under direct EBA supervision and subjects its issuer to additional regulatory requirements. Kaiko said the US is taking a similar approach to stablecoin regulation under the GENIUS Act.

On Oct. 21, the Office of the Comptroller of the Currency issued its first final rule under the law, establishing reserve and redemption requirements for stablecoin issuers under its supervision, effective Jan. 18, 2027. Beginning in July 2028, US platforms will face restrictions on offering stablecoins from issuers that do not meet the law’s approval requirements.

Circle has pursued authorization in both Europe and the US, while Tether has launched a separate US-focused stablecoin, USAT.