USDC has overtaken Tether's USDT as the dominant stablecoin in euro-denominated trading, according to data from Kaiko, in a shift the market research firm links to the European Union's Markets in Crypto-Assets regulation reshaping which tokens exchanges can offer their clients.
Kaiko figures show USDC's share of stablecoin trading volumes against the euro climbed from 10% in January 2024 to 56% in September 2026. The token has held above 50% of monthly euro volumes every month since June 2025, a sustained reversal of the position Tether held for years as the default stablecoin on crypto exchanges.
The repositioning follows a wave of exchange-level restrictions tied to MiCA compliance. Binance removed spot pairs for several stablecoins not compliant with the regulation for clients in the European Economic Area, effective March 31, 2025. Kraken separately withdrew USDT trading for its EEA clients. Those moves came as exchanges operating in the bloc moved to align their offerings with MiCA's requirements for e-money tokens, under which Circle's USDC has held an authorised status that Tether's USDT has not matched in the same way.
Beyond trading volumes, Kaiko also found that USDC's order book depth on euro pairs is now approximately 40% deeper than USDT's, a liquidity measure suggesting the shift extends beyond headline volume figures into the practical ease of executing euro-denominated trades.
Tether still dwarfs USDC worldwide
The euro market picture contrasts sharply with the global one. Tether's circulating supply remains approximately 2.5 times larger than USDC's worldwide, according to Kaiko, underlining that the European shift is a regional phenomenon tied to regulatory structure rather than a broader displacement of Tether's dominance.
Tighter EU supervision ahead for USDC
USDC's rise in Europe is coinciding with closer regulatory scrutiny of the token itself. The European Banking Authority classified USDC on October 14, 2026, as the first e-money token "of significant importance" in the EU. From November 12, 2026, the EBA will take over direct supervision of the own funds, reserves, liquidity and recovery and redemption plans of USDC's European issuer, a step up from the oversight regime applied to smaller e-money tokens.
Supervision will be split between regulators. France's ACPR will retain responsibility for governance and outsourcing arrangements at the European issuer from the same date, while the EBA assumes the financial-soundness side of oversight. The arrangement marks one of the first tests of how MiCA's tiered supervisory framework applies to a stablecoin that has grown large enough to be designated systemically relevant within the bloc.
