USDC Overtakes USDT in Euro Stablecoin Trading as MiCA Reshapes Market

Circle's USDC now commands 56% of stablecoin trading against the euro, up from just 10% in January 2024, according to a new Kaiko report — a reversal that has pushed Tether's USDt out of the top spot in the European market for the first time in a meaningful way.

The shift accelerated after major cryptocurrency exchanges restricted USDT trading for customers in the European Economic Area under the Markets in Crypto-Assets Regulation (MiCA). Kaiko, a Paris-based market data provider, found that USDC has also overtaken USDT in euro-denominated trading liquidity: its order books are now roughly 40% deeper than its rival's.

Tether still dominates globally. Its circulating supply remains about 2.5 times larger than USDC's, and the report does not suggest that lead is under near-term threat outside the euro corridor.

Why euro trading pairs matter

Kaiko described stablecoin-to-euro pairs as a "main on-ramp and off-ramp for European customers." Those pairs let users exchange euros for US dollar-pegged stablecoins when they enter or exit cryptocurrency markets, which makes them a structural choke point for European liquidity.

Whoever controls that corridor effectively controls the European retail and institutional entry point into dollar-denominated crypto markets. USDC now holds that position, and the report notes the USDC-to-euro pair has itself overtaken the USDC-to-USDT pair in trading activity — a sign that European users are routing around Tether entirely rather than just diversifying.

What did the EBA's designation change?

The findings land roughly two weeks after the European Banking Authority designated USDC as the EU's first "significant e-money token" under MiCA. That classification places the stablecoin under direct EBA supervision and subjects its issuer, Circle, to additional regulatory requirements.

The designation cuts both ways. It adds compliance burden, but it also formalizes USDC's status as the bloc's systemically important compliant dollar token — a status Tether has not sought in Europe. Germany continues to lead the MiCA authorization race as Europe's compliance deadline pressure builds.

Could the same shift happen in the US?

Kaiko thinks so. The report points to the GENIUS Act as evidence the US is taking a similar regulatory approach, raising the possibility that American exchanges could see the same migration in trading activity that European venues have experienced.

The US timeline is already set. 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.

Then comes the harder cutoff: beginning in July 2028, US platforms will face restrictions on offering stablecoins from issuers that do not meet the law's approval requirements.

What does this mean for Circle and Tether?

The regulatory divergence favors Circle, which has pursued authorization on both sides of the Atlantic. Tether has taken a different route: rather than seeking US compliance for USDt, it has launched a separate US-focused stablecoin, USAT.

That strategy preserves Tether's offshore franchise but leaves USDt exposed to the same exchange delistings in the US that eroded its European position — if American venues behave like European ones did.

The euro market offers a preview. Within roughly two years of MiCA enforcement, a compliance-driven reshuffle moved USDC from 10% to 56% of euro stablecoin volume. US platforms now have until July 2028 before the same dynamic can be tested at far larger scale.