USDC Overtakes USDT in Euro Trading as MiCA Reshapes the Market

Circle’s USDC now accounts for 56% of stablecoin trading against the euro, up from 10% in January 2024, according to a new Kaiko report. The shift accelerated after major exchanges restricted USDT trading for customers across the European Economic Area under the Markets in Crypto-Assets Regulation (MiCA). USDC’s euro order books are also roughly 40% deeper than USDT’s, despite Tether maintaining a global stablecoin supply about 2.5 times larger than USDC’s.

Kaiko described euro-denominated stablecoin pairs as a primary on-ramp and off-ramp for European customers entering or exiting cryptocurrency markets. USDC’s regulatory standing has strengthened: about two weeks before the report, the European Banking Authority designated it the EU’s first “significant e-money token” under MiCA, placing the stablecoin under direct EBA supervision and subjecting Circle to additional requirements.

The regulatory environment in the United States is moving in a similar direction. On October 21, the Office of the Comptroller of the Currency issued its first final rule under the GENIUS Act, establishing reserve and redemption requirements for supervised stablecoin issuers. The rule takes effect on January 18, 2027, while US platforms will face restrictions on offering stablecoins from unapproved issuers beginning in July 2028.

Kaiko said these changes could alter the balance between Circle and Tether in European trading. Circle has pursued authorization in both Europe and the US, while Tether has introduced a separate US-focused stablecoin, USAT. Tether remains the larger stablecoin issuer globally, but the report indicates that regulatory compliance and exchange restrictions are giving USDC an advantage in euro-denominated liquidity.