Circle’s USDC overtakes Tether’s USDT in euro trading as MiCA rules reshape market

Circle's USDC now leads Tether's USDT in stablecoin trading against the euro, capturing 56% of the market according to Kaiko data. This marks a dramatic reversal from January 2024, when USDC held just 10% of euro-paired stablecoin trading volume.

The shift has been driven primarily by the European Union's Markets in Crypto-Assets framework, known as MiCA. As enforcement of these regulations has tightened, exchanges serving European users have restricted USDT, with trading activity following toward the compliant alternative.

MiCA's impact on stablecoin trading

MiCA's stablecoin rules took effect on June 30, 2024, following a transitional period that ended in mid-2026. This gave platforms time to adjust before non-compliant tokens like USDT were delisted. Coinbase will automatically convert USDT and 13 other non-compliant tokens for users in the European Economic Area on or after October 30, 2026.

USDC's regulatory status received a formal upgrade on October 14, 2026, when it was recognized as the EU's first "significant" e-money token, or EMT. This designation brings direct supervision from the European Banking Authority over its reserves and liquidity, with EBA oversight beginning November 12, 2026.

Market split emerges

While the headline shift is between two dollar-pegged tokens, euro-backed stablecoins actually captured up to 67% of the euro-stablecoin trading segment in 2024-2025 data. However, they still represented under 8% of total EUR trading volume, according to the research findings.

The clearest consequence of MiCA enforcement is a split market. Compliant tokens like USDC gain access to licensed European venues and the liquidity that comes with them. USDT, meanwhile, maintains strong usage outside regulated channels, particularly in decentralized finance where protocols run on smart contracts rather than through licensed intermediaries.

Implications for market participants

For Circle, the shift represents a regulatory tailwind. Being the EU's first significant EMT gives USDC a head start with exchanges seeking certainty about listed assets. The trade-off is closer scrutiny as EBA oversight of reserves and liquidity means Circle's operations in the bloc will be watched more carefully.

For Tether, the European market is shrinking as a channel rather than a demand source. While its global footprint and DeFi presence maintain relevance, losing access to regulated euro venues means ceding a growing and increasingly institutional segment to a rival.

Several developments remain to be watched. Whether USDC's 56% share continues rising after Coinbase's conversion fully takes effect, how EBA supervision plays out in practice for Circle starting November 12, and whether euro-denominated stablecoins can grow beyond their sub-8% slice of total EUR trading volume will shape the future landscape.