Circle’s stablecoin, USDC, has outpaced its main rival Tether (USDT) in market capitalization growth for the second consecutive year. This signals a notable shift in the stablecoin landscape, continuing the faster expansion trend established in 2024.
In 2025, USDC’s market cap surged 73% to $75.12 billion. By comparison, USDT grew 36%, reaching $186.6 billion.
The primary driver for this outperformance is increasing institutional demand. These players seek a regulated and transparent digital dollar.
Circle operates under U.S. money transmission licenses. The company backs USDC reserves exclusively with cash and short-term U.S. Treasuries. This compliance-focused approach has made USDC the preferred stablecoin for major financial players, including Visa, Mastercard, and BlackRock, who are integrating it for settlements and treasury operations.