Circle’s USDC overtakes Tether’s USDT in euro trading as MiCA rules reshape market

Circle’s USDC now leads Tether’s USDT in stablecoin trading against the euro. According to a new report from Kaiko, USDC accounts for 56% of euro-paired stablecoin trading.

In January 2024, that figure sat at just 10%. The European Union’s Markets in Crypto-Assets framework, better known as MiCA, has been a primary driver. As enforcement has tightened, exchanges serving European users have restricted USDT. Trading activity has followed the compliant option.

How USDC climbed from 10% to 56%

Kaiko’s data tracks the share of stablecoin trading volume paired against the euro. USDC’s climb from 10% to 56% came with deeper liquidity as exchanges pulled back on USDT under MiCA.

MiCA’s stablecoin rules took effect on June 30, 2024. A transitional period, which ended in mid-2026, gave platforms time to adjust before non-compliant tokens like USDT were delisted.

Coinbase will automatically convert USDT and 13 other non-compliant tokens for users in the European Economic Area on or after October 30, 2026. Balances that once sat in USDT will be steered toward USDC and other compliant alternatives.

USDC’s regulatory status also got a formal upgrade. On October 14, 2026, it was recognized as the EU’s first “significant” e-money token, or EMT. That label brings direct supervision from the European Banking Authority over its reserves and liquidity, with EBA oversight beginning November 12, 2026.

Dollar stablecoins still dominate the euro market

The headline shift is between two dollar-pegged tokens. Stablecoins actually denominated in euros remain a smaller part of the overall picture.

Euro-backed stablecoins captured up to 67% of the euro-stablecoin trading segment in 2024 to 2025 data. Yet they still represented under 8% of total EUR trading volume, according to the research findings.

Background: why MiCA favors Circle

MiCA is the EU’s attempt to put the crypto industry under a single rulebook across its member states. For stablecoins, the framework requires issuers to meet authorization, reserve and oversight standards before their tokens can be offered on regulated platforms in the bloc.

Circle positioned USDC to fit inside that system. Tether’s USDT, the largest stablecoin by most global measures, did not take the same route in Europe. As a result, European exchanges have been restricting or delisting it to stay on the right side of the rules.

What this means for traders, exchanges and issuers

The clearest consequence is a split market. Compliant tokens like USDC gain access to licensed European venues and the liquidity that comes with them. USDT, meanwhile, keeps strong usage outside regulated channels, particularly in decentralized finance.

DeFi protocols run on smart contracts rather than through licensed intermediaries. That makes them harder for MiCA to reach directly. USDT can remain widely used there even as it disappears from centralized European order books.

For Circle, the shift is a regulatory tailwind. Being the EU’s first significant EMT gives USDC a head start with exchanges that want certainty about what they list. The trade-off is closer scrutiny, as EBA oversight of reserves and liquidity means Circle’s operations in the bloc will be watched more carefully than before.

For Tether, the European market is shrinking as a channel rather than as a demand source. Its global footprint and DeFi presence keep it relevant. But losing access to regulated euro venues means ceding a growing and increasingly institutional segment to a rival.

For exchanges, Coinbase’s planned conversion of USDT and 13 other tokens shows that platforms are choosing regulatory standing over offering every popular asset. Other venues serving EEA users face the same pressure.

Several things are worth watching from here. One is whether USDC’s 56% share keeps rising once Coinbase’s conversion and similar moves fully take effect. Another is how EBA supervision, starting November 12, 2026, plays out in practice for Circle. A third is whether euro-denominated stablecoins can grow beyond their sub-8% slice of total EUR trading volume.