JPMorgan says Circle’s USDC stablecoin outpaces Tether’s USDT in onchain growth

JPMorgan analysts, led by Nikolaos Panigirtzoglou, found that Circle's USDC stablecoin is outpacing Tether's USDT in both market capitalization and onchain growth. USDC's market cap grew 72% from January to around $74 billion, significantly higher than USDT's 32% growth in the same period. This divergence is attributed to USDC's transparent reserve management, regular audits, and compliance with frameworks like Europe's MiCA regulation, making it preferred by regulated entities. Conversely, USDT faced delistings after MiCA rolled out. While USDT still dominates centralized exchange trading outside the U.S., JPMorgan suggests this could change if USDC's compliance model becomes the global standard. Tether plans to launch its U.S.-compliant stablecoin, USAT, by year-end to counter this competition.

(Source：The Block)