USDC overtakes USDT in euro stablecoin trading as EU rules reshape market: Kaiko

Circle’s USDC (USDC) has overtaken Tether’s USDt (USDT) in stablecoin trading against the euro, as European Union regulations increasingly favor bloc-compliant stablecoins, according to a new Kaiko report.USDC now accounts for 56% of stablecoin trading against the euro, up from just 10% in January 2024, according to Kaiko data. The shift accelerated after major exchanges restricted USDT trading for customers in the European Economic Area under the Markets in Crypto-Assets Regulation (MiCA).USDC has also overtaken USDT in euro-denominated trading liquidity, with its order books now roughly 40% deeper than its rival’s. Tether remains the larger stablecoin globally, with a circulating supply about 2.5 times that of USDC.Kaiko described stablecoin-to-euro trading pairs as a “main on-ramp and off-ramp for European customers,” allowing them to exchange euros for US dollar-pegged stablecoins when entering or exiting cryptocurrency markets.USDC-to-euro trading pair overtakes USDC-to-USDT. Source: KaikoThe findings come about two weeks after the European Banking Authority designated USDC as the EU’s first “significant e-money token” under MiCA, a classification that places the stablecoin un...