In 2025, Tether’s USDT is significantly challenging Circle’s USDC lead on BitPay, a major cryptocurrency payment platform. While USDC dominated BitPay transactions in 2024 with an 85% share compared to USDT’s 13%, by May 2025 this gap narrowed considerably: USDC’s share dropped to 56%, and USDT’s rose to 43% in transaction count. Moreover, USDT has overtaken USDC in terms of payment volume on BitPay, accounting for over 70% of stablecoin payment volume since March 2025.
This shift reflects a broader competitive dynamic between the two stablecoin giants. Tether’s USDT continues to maintain its position as the largest stablecoin by market capitalization (over $143 billion in circulation in 2025) and benefits from widespread adoption, especially in Asia and emerging markets.
Despite regulatory challenges, particularly in the European Union where Tether exited the EU market due to strict MiCA regulations, USDT remains dominant globally by leveraging decentralized operations and broad blockchain network integration.
Circle’s USDC, by contrast, emphasizes regulatory compliance and integration within traditional finance, gaining favor among institutional users and in regulated markets such as the EU. However, USDC’s share on BitPay has declined in 2025 despite Circle’s public launch and regulatory advantages.
So, Tether’s USDT is closing the gap with Circle’s USDC on BitPay payments in 2025, with USDT now commanding a substantial share of both transaction count and volume. This competition highlights contrasting strategies: Tether’s decentralized, broad-market approach versus Circle’s regulatory-compliant, institutional focus, shaping the future landscape of stablecoins and crypto payments.
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