Circle's USDC Leads Tether's USDT in Growth for Second Consecutive Year
Circle's USDC, a stablecoin linked to the US dollar, has surpassed Tether's USDT in growth for the second year in a row, reflecting a shift towards regulated digital assets as the US government becomes more supportive. In 2025, USDC's market cap surged by 73% to $75.12 billion, while USDT increased by 36% to $186.6 billion, according to CoinDesk. This follows USDC's 77% growth in 2024, compared to USDT's 50%.
Founded in 2013 by Jeremy Allaire and Sean Neville, Circle is headquartered in New York and went public on the NYSE last June. USDC is underpinned by cash and short-term US Treasuries held at regulated institutions. Circle holds various licenses in the US and complies with Europe's MiCA framework, operating under e-money licenses.
Tether, founded in 2014 and led by CEO Paolo Ardoino, remains unregulated in the US and Europe but is licensed in El Salvador. Tether did not respond to requests for comment.
Institutional Trust
USDC's success is largely due to institutional demand for regulatory-compliant assets. The GENUIS Act, a comprehensive framework for stablecoins, has encouraged institutions to adopt regulated tokens like USDC.
Major companies such as Visa, Mastercard, and BlackRock have integrated USDC for settlement and treasury operations. Analysts from JPMorgan note USDC's transparency and compliance with MiCA as factors that enhance its appeal among financial institutions.
Together, USDC and USDT dominate over 80% of the $312 billion stablecoin market, highlighting the gap for other tokens to capitalize on regulatory advancements. Treasury Secretary Scott Bessent predicts the stablecoin market could reach $3.7 trillion by the decade's end, raising questions about future growth beyond USDC and USDT.
Crypto advocates remain hopeful that the rise of stablecoins will bring new capital and users to the crypto ecosystem in 2026.