Circle’s USDC Surpasses Tether in Trading Volume, Visa Data Shows
Visa data reveals USDC has overtaken USDT in stablecoin volume, with a 63% monthly spike driven by Wall Street banks adopting digital currencies for settlements.
Quick Take
USDC surpasses USDT in stablecoin trading volume.
Monthly volume spiked 63% as banks adopt digital currencies.
Visa data highlights growing institutional demand for stablecoins.
Circle gains ground despite Tether's historical dominance.
Market Impact Analysis
BullishIncreased institutional adoption of USDC signals growing trust and utility, potentially boosting Circle's ecosystem and Ethereum-based DeFi activity.
Speculation Analysis
Key Takeaways
- USDC trading volume eclipsed USDT for the first time, according to Visa's on-chain data.
- Total stablecoin volume jumped 63% in a single month as Wall Street banks accelerated adoption.
- Circle's regulatory-first approach is paying dividends, capturing institutional flows.
- The volume flip signals a potential power shift in the $160B stablecoin market.
What Happened
Circle's USDC flipped Tether's USDT in trading volume, marking a historic first in the stablecoin arena. Visa's blockchain analytics unit captured the shift, revealing a 63% monthly surge in overall stablecoin activity. The move underscores Wall Street's growing appetite for digital settlement rails. USDC, known for its regulatory compliance, is emerging as the institutional favorite.
The Numbers
The 63% spike in stablecoin volume was the catalyst. While exact dollar figures weren't disclosed, the velocity of USDC transactions now exceeds USDT's. Tether remains the market cap leader, but trading volume often signals real-world usage. Visa's data provides a window into settlement flows that market cap alone obscures.
Why It Happened
Banks are integrating stablecoins for faster, cheaper settlement. Circle's transparency and U.S. regulatory posture give it an edge with compliance-focused institutions. The trend reflects a broader flight to quality in crypto markets.
Broader Impact
USDC's rise could accelerate the stablecoin regulatory race. It may bolster Ethereum-based DeFi, where USDC dominates. If sustained, it pressures Tether to improve transparency.
What to Watch Next
- Whether USDC can sustain its volume lead over coming months.
- Regulatory clarity from U.S. agencies that could further entrench USDC.
- Additional bank partnerships that expand Circle's network.
This article is for informational purposes only and does not constitute financial advice.
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