CIRCLE'S USDC OUTPACES GROWTH OF TETHER'S USDT

Summary from the TLDR Crypto newsletter

Circle's USDC stablecoin grew 73% to $75.12 billion in 2025, significantly outpacing Tether's USDT growth of 36% to $186.6 billion for the second consecutive year, driven by increasing institutional demand for regulated digital dollars following the passage of the GENUIS Act. USDC's regulatory compliance – including state money transmission licenses, New York virtual currency licensing, and MiCA framework adherence in Europe – has made it the preferred choice for institutions like Visa, Mastercard, and BlackRock, while USDT remains unregulated in the US and Europe. Despite USDC's faster growth trajectory, the two stablecoins still command over 80% of the $312 billion total stablecoin market, with Treasury Secretary Scott Bessent projecting the sector could reach $3.7 trillion by decade's end. JPMorgan analysts noted that USDC's transparent reserve management and regular audits make it more trustworthy among institutional investors and regulated entities compared to competitors.