JPMorgan reports that Circle’s USDC has outpaced Tether’s USDT in on-chain activity, marking a significant shift in the stablecoin market. This change has been driven by growing demand for regulatory-compliant digital assets, especially among institutional investors.

The European MiCA regulatory framework, which took effect in mid-2024, has played a pivotal role. USDC’s transparent reserves, regular audits, and full compliance with these new standards have made it attractive to institutions seeking stability and oversight in their digital transactions. As a result, USDC’s market capitalization surged 72% in 2025, reaching approximately $75 billion, while USDT’s market cap grew by 32%.

Institutional adoption continues to accelerate, thanks to USDC’s regulatory clarity and reputation for transparency. In contrast, Tether faces ongoing regulatory scrutiny and has lost access to several European exchanges due to its lack of MiCA authorization. This has further boosted USDC’s position as the preferred stablecoin for compliant, large-volume transactions.

With its robust regulatory standing and increasing on-chain activity, USDC is setting a new standard for stability, transparency, and trust in the digital asset ecosystem.