Circle’s USDC has surged past Tether’s USDT as the dominant stablecoin for euro-denominated trading, according to a new report from Kaiko. The shift reflects how Europe’s Markets in Crypto-Assets Regulation (MiCA) is reshaping crypto market access—especially on major trading venues that increasingly steer users toward stablecoins considered compliant within the EU framework.
Kaiko data shows that USDC now represents 56% of stablecoin trading against the euro, climbing from just 10% in January 2024. The change accelerated after major exchanges limited USDT trading for customers located in the European Economic Area under MiCA.
Key takeaways
- USDC’s euro trading share rose to 56% from 10% in January 2024, according to Kaiko.
- USDC has surpassed USDT in euro liquidity, with order books roughly 40% deeper.
- MiCA-linked access restrictions for USDT on major exchanges appear to have accelerated the rotation.
- US regulatory timelines under the GENIUS Act could create a similar dynamic in the US market.
MiCA-driven rotation toward USDC in Europe
Kaiko frames stablecoin-to-euro pairs as a core “main on-ramp and off-ramp” for European users. In practice, that means traders and institutions often convert euros into dollar-pegged stablecoins to enter crypto markets—and reverse the process to exit. When a particular stablecoin becomes more widely available or better supported by trading platforms, it can quickly gain share in these conversion flows.
In this environment, USDC has been advantaged as regulatory clarity and platform compliance converge. Kaiko attributes part of USDC’s gains to exchange-level changes following MiCA implementation, particularly where customers in the European Economic Area faced limitations on USDT trading.
While Tether’s USDT remains larger globally—Kaiko notes its circulating supply is about 2.5 times that of USDC—the euro-denominated trading venue appears to be fragmenting along compliance lines rather than relative market size alone.
Trading depth improves: USDC order books outpace USDT
The report does not stop at market share. Kaiko also highlights liquidity differences in euro-denominated markets, stating that USDC’s order books are roughly 40% deeper than USDT’s.
That distinction matters for traders because deeper order books can reduce slippage and make execution more predictable—especially for larger orders or during periods of volatility. In a market where euro-to-stablecoin conversions are a routine step for entering and exiting positions, improved liquidity can become a reinforcing cycle: better execution draws more activity, which in turn sustains liquidity.
Put differently, even if USDT remains dominant worldwide, euro-specific trading venues can become “USDC-first” when compliance and accessibility drive demand.
EBA classification and why it matters for market access
Kaiko’s findings arrive roughly two weeks after the European Banking Authority designated USDC as the EU’s first “significant e-money token” under MiCA. That classification brings USDC under direct EBA supervision and adds additional regulatory requirements for Circle.
For market participants, these distinctions aren’t merely administrative. When regulators explicitly categorize a stablecoin in a more consequential way, exchanges and other trading providers often adjust their listing policies, routing, and eligibility rules—particularly when customer geography determines whether a product can be offered.
Earlier coverage from Cointelegraph noted the EBA’s designation of USDC as a significant e-money token under MiCA: https://cointelegraph.com/news/eba-circle-usdc-stablecoin-significant-token-mica.
The US could replicate Europe’s stablecoin reshuffling
Kaiko also points to a parallel regulatory approach in the United States, referencing the GENIUS Act. The implication is that American platforms could face similar compliance-driven constraints on stablecoins, potentially shifting trading activity in a manner comparable to what Europe is already seeing.
On Oct. 21, the Office of the Comptroller of the Currency issued its first final rule under the GENIUS Act. The rule establishes reserve and redemption requirements for stablecoin issuers under its supervision and becomes effective Jan. 18, 2027. In addition, beginning in July 2028, US platforms will face restrictions on offering stablecoins from issuers that do not meet the law’s approval requirements.
These timelines create a window in which market structure can change before restrictions fully bite. If exchanges prepare compliance processes early—or if customers anticipate future eligibility differences—liquidity can migrate ahead of formal deadlines.
Cointelegraph previously reported on the OCC’s final rule under GENIUS and its key requirements, including custody and reserve expectations: https://cointelegraph.com/news/occ-finalizes-genius-act-rules-stablecoin-issuers-custody.
The regulatory direction could also influence which issuers are best positioned across both regions. Kaiko notes that Circle has pursued authorization in Europe and the US. Tether, by contrast, has taken a different approach by launching a separate US-focused stablecoin, USAT, rather than relying solely on its global USDT offering. Cointelegraph has covered this USAT launch: https://cointelegraph.com/news/tether-launch-usat-regulated-stablecoin-us.
That divergence matters because compliance regimes often reward product strategies built for specific jurisdictions. If stablecoin offerings become segmented by region, the “best” stablecoin may shift from the one with the largest global supply to the one best aligned with local regulatory eligibility and exchange access.
What to watch next
For traders and liquidity providers, the immediate signal is whether USDC continues consolidating euro-based trading share as MiCA-related exchange restrictions settle into steady-state. In parallel, the GENIUS Act rulemaking timeline could determine whether similar stablecoin access constraints and liquidity shifts emerge in the US ahead of the 2027 and 2028 milestones.
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