USDC Overtakes USDT in Euro Trading as MiCA Reshapes Liquidity
USDC has overtaken USDT in euro-denominated stablecoin trading, reaching a 56% share, up from 10% in January 2024, according to Kaiko. Its euro order-book depth is now about 40% greater than USDT’s, giving traders more liquidity when converting between euros and dollar-pegged stablecoins. The shift accelerated after some European Economic Area exchanges restricted USDT trading under the EU’s MiCA rules. The European Banking Authority has also designated USDC a significant e-money token, placing it under direct supervision. USDT remains larger by global circulation, at about 2.5 times USDC’s supply. In the US, the GENIUS Act may encourage platforms to favor approved stablecoins, with restrictions on non-approved stablecoins due from July 2028. Tether has launched USAT for the US market. For traders, the developments underline how regulation and exchange access can shape stablecoin liquidity and market share, even as USDC and USDT remain designed to hold a one-dollar peg.
Neutral
The news points to stronger adoption and euro-market liquidity for USDC, but it is unlikely by itself to move the token’s price materially: USDC is designed to remain pegged to one US dollar. In the short term, MiCA-related exchange restrictions and deeper order books may lead traders to use USDC more often for euro conversions, supporting its trading activity and reinforcing confidence in its market access. However, greater use does not necessarily translate into a sustained price premium because arbitrage and redemption mechanisms generally keep stablecoin prices near their peg. Over the longer term, direct supervision and possible US rules favoring approved issuers could strengthen USDC’s position, while creating competitive pressure for USDT. Tether’s USAT launch is a response to that changing environment. These developments could alter liquidity distribution and trading preferences, but the likely price effect on the stablecoins themselves remains limited unless confidence in their reserves, redemptions or dollar pegs changes.