USDC Tops USDT in Global Stablecoin Market Amid Regulatory Shifts

USDC’s rising market share narrows the gap with USDT as a regulatory push toward transparent reserves reshapes the stablecoin landscape.

Rich by Coin

2026-03-10

Global stablecoin market is being reshaped as Circle’s USDC rapidly closes in on Tether (USDT), signaling a market rebalancing. As of last month, USDC’s market share expanded to 25%, while Tether declined to the low-60% range, narrowing the gap. The GENIUS Act, passed by the U.S. Congress last year, is cited as a key driver behind capital shifting toward more transparent assets. The law requires stablecoin issuers to back reserves 1:1 with safe assets such as U.S. Treasuries and deposits and to publish monthly external attestations.

Circle Internet Group’s stock has surged about 87% over the last month. Following the latest earnings, USDC circulation and fee revenue growth expectations have heightened, suggesting increased institutional inflows. The influence of stablecoin issuers is expanding beyond crypto markets into traditional finance. The U.S. Treasury projects the stablecoin market could reach up to $2 trillion by 2028.

Demand for short-term Treasuries and money-market funds (MMFs) is also expected to surge. Samsung Securities analyst Hong Jin-hyun says the U.S.’s core strategy is to reinforce dollar supremacy and capital-market dominance, aiming to channel global liquidity into domestic markets via tokenized assets and on-chain payments.

Global stablecoins are undergoing rapid change as Circle’s USDC closes in on Tether (USDT). USDC captured about 25% of the market last month, narrowing the lead held by USDT to the low-60% range, signaling a market rebalancing as investors seek more transparent assets. The GENIUS Act, enacted by Congress, is cited as a key driver behind capital shifts toward transparent assets. The law requires stablecoin issuers to back reserves 1:1 with safe assets and to publish monthly external attestations, potentially boosting confidence and inflows.

Following earnings, USDC circulation and fee revenue growth expectations have risen, suggesting increased institutional inflows. The Treasury projects the stablecoin market could reach up to $2 trillion by 2028, with demand for short-term Treasuries and money-market funds expected to surge. The trend points to growing influence of stablecoin issuers beyond crypto markets into traditional finance, as on-chain payments and tokenized assets channel global liquidity into domestic markets.