Circle Internet’s (CRCL) dollar-pegged stablecoin, USDC, grew faster than rival Tether’s USDT for the second year in a row in 2025, driven by growing demand for regulated, blockchain-based dollars as the US government moved closer to digital assets.
USDC’s market capitalization rose 73% to $75.12 billion, while USDT added 36% to $186.6 billion, according to data from CoinDesk. In 2024, USDC grew by 77% compared to 50% for USDT.
New York-based Circle Internet was founded in 2013 by Jeremy Allaire and Sean Neville and went public on the New York Stock Exchange (NYSE) last June. USDC is backed by cash and short-term US Treasuries held in regulated institutions.
In the US, Circle holds money transmission licenses in several states and territories, as well as a virtual currency license in New York State. In Europe, it complies with the post-2024 MiCA framework and operates under e-money licenses in key jurisdictions.
Tether’s USDT remains unregulated in the US and Europe. The company, founded in 2014 and led by CEO Paolo Ardoino, operates as a digital asset service provider licensed in El Salvador. Tether did not respond to an emailed request for comment.
trust factor
Observers noted that USDC’s outperformance appears to be due to institutional demand for assets that comply with regulatory guidelines.
The GENUIS Act created a comprehensive framework for payment stablecoins and digital tokens linked to monetary value and intended for payments. That led several high-profile banks and investment institutions to explore stablecoins, particularly regulated ones like USDC.
The token, for example, has been actively integrated and preferred by companies such as Visa, Mastercard and BlackRock, primarily for settlement and treasury operations.
“USDC’s transparent reserve management and regular audits make it more trustworthy among institutional investors and other regulated entities,” JPMorgan analysts said in a note in October.
“In addition, its compliance with frameworks such as the Cryptoasset Markets (MiCA) regulation in Europe sets it apart from its competitors, making USDC the stablecoin of choice for financial institutions,” they added.
USDC and USDT together account for more than 80% of the total stablecoin market value of $312 billion, a sign that other tokens have yet to benefit from regulatory advances in the world’s largest economy.
“Treasury Secretary Scott Bessent has repeatedly stated that the stablecoin market could grow to $3.7 trillion by the end of the decade. Against this backdrop, it remains to be seen whether stablecoin growth will remain confined to USDt and USDC, or expand significantly to other tokens,” the FRNT Financial analyst said in a Friday newsletter.
“However, cryptocurrency advocates are optimistic that the proliferation of stablecoins will bring new capital and users to the crypto ecosystem in 2026,” they added.
