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Circle’s USDC stablecoin grew 73% to $75.12 billion in 2025, outpacing Tether’s 36% expansion to $186.6 billion for the second consecutive year, as regulated digital dollar issuers continue to gain ground on less transparent rivals amid improving regulatory clarity in the United States and Europe.
Founded in 2013 by Jeremy Allaire and Sean Neville, New York–based Circle has positioned USDC as a fully reserved, transparent alternative to its offshore rivals. The company went public on the New York Stock Exchange last June, a milestone that further cemented its compliance-first strategy.
USDC is backed by cash and short-term U.S. Treasuries held at regulated financial institutions, a structure that proponents argue supports sustainable stablecoin growth among risk-conscious investors.
Circle holds money transmission licenses across multiple U.S. states and territories, as well as a virtual currency license from New York regulators.
In Europe, the firm operates under e-money licenses and brought USDC into compliance with the Markets in Crypto-Assets (MiCA) framework after it came into force in 2024. These steps have been widely cited as key reasons behind USDC’s accelerating stablecoin growth.
Tether, by contrast, remains unregulated in both the United States and Europe. Founded in 2014 and led by CEO Paolo Ardoino, the company is licensed as a digital asset service provider in El Salvador.
Tether did not respond to a request for comment, but has previously defended its business model and reserve disclosures. Still, analysts say regulatory uncertainty continues to weigh on USDT’s relative stablecoin growth in institutional channels.
Observers point to trust and compliance as central drivers of the divergence. The passage of the GENUIS Act in the U.S. established a comprehensive framework for payment stablecoins and other tokens pegged to monetary value, encouraging banks and asset managers to explore on-chain dollars. That shift has given a boost to stablecoin growth tied to issuers that can meet formal regulatory standards.
USDC has been actively integrated by major financial firms including Visa, Mastercard, and BlackRock, particularly for settlement, treasury management, and cross-border payments. These partnerships have reinforced the perception that regulated tokens are best positioned to benefit from the next phase of stablecoin growth.
“USDC’s transparent reserve management and regular attestations make it more trustworthy among institutional investors and other regulated entities,” analysts at JPMorgan wrote in an October research note.
“Its compliance with frameworks such as MiCA clearly differentiates it from competitors,” they added, linking those factors directly to stronger stablecoin growth prospects.
Despite USDC’s gains, the stablecoin market remains highly concentrated. USDC and USDT together account for more than 80% of the total $312 billion stablecoin market, highlighting how stablecoin growth has so far accrued mainly to the two dominant issuers. Smaller tokens have struggled to capitalize on regulatory momentum in the world’s largest economies.
Looking ahead, some analysts believe the overall market could expand dramatically. “Treasury Secretary Scott Bessent has repeatedly stated that the stablecoin market could grow to $3.7 trillion by the end of the decade,” analysts at FRNT Financial wrote in a recent newsletter.
Whether that stablecoin growth remains concentrated in USDC and USDT or broadens to include new entrants remains an open question.
For crypto advocates, the implications extend beyond market share battles. Wider adoption of compliant digital dollars could bring new capital and users into the broader ecosystem as early as 2026.
If regulatory clarity continues to improve, proponents argue, stablecoin growth may become one of the most powerful bridges between traditional finance and blockchain-based infrastructure.
For now, Circle’s second straight year of outpacing Tether suggests that the next chapter of stablecoin growth will be defined less by size alone and more by credibility, compliance, and trust.
