USDC Tops USDT in On-Chain Activity as as Markets Lean Toward Compliance-Friendly Stablecoins
A recent report from global financial institution J.P. Morgan noted that USDC has become the preferred stablecoin for on-chain transactions, overtaking USDT, per .
This milestone comes as Circle’s USDC recorded one of the most significant supply increases in the past year—rising by 72% to reach a valuation of $74 billion.
By contrast, Tether’s USDT has viewn a more modest 32% increase in supply year-to-date, according to the publication. However, USDT still dominates the stablecoin market with over 59% of total supply, valued at $307 billion.
The report attributed USDC’s recent surge in on-chain volume largely to its regulatory clarity, which continues to attract compliance-conscious institutions.
USDC has also aligned closely with the Markets in Crypto-Assets (MiCA) framework in Europe, positioning it as a leading compliant stablecoin in that region. In the United States, the stablecoin is moving swiftly to align with the GENIUS Act framework, while Tether is preparing to launch USTa, its upcoming U.S.-compliant stablecoin.
Partnerships have been a major catalyst for USDC’s adoption, especially across Base and Solana, which have become key networks for decentralized finance (DeFi) growth. Collaborations with major financial institutions such as Mastercard and Visa have also strengthened its market presence.
Global Stablecoin Momentum
Stablecoins continue to be one of the quickest-growing segments in crypto, with several countries joining the race to issue their own local digital currencies and reduce dependence on the U.S. dollar.
In South Korea, , the first stablecoin backed by the Korean won, through a partnership with Frax Finance. The stablecoin is expected to debut on the Base network.
Elsewhere in Asia, that function similarly to stablecoins but are backed by sovereign bonds.
Meanwhile, Tether’s dominance remains strong. Reports indicate that the company , surpassing holdings by countries such as South Korea and the UAE.
Tether’s U.S. debt exposure is likely to grow further, as several nations are shifting their reserves toward gold. For instance, South Korea recently resumed gold purchases later than a 12-year hiatus, signaling a diversification away from U.S. assets.
