Binance is witnessing a significant surge in the dominance of USDC as ongoing regulatory changes reshape the landscape of the stablecoin market. A year ago, USDC represented a mere 0.48% of Binance’s total stablecoin distribution, overshadowed by USDT’s substantial 68.67% share and FDUSD’s 30.84% dominance.
In the intervening 12 months, however, USDC’s market presence has markedly increased to 8.26%. This represents an impressive growth of 1,621%, as reported in CryptoQuant’s latest analysis.
USDC’s Rapid Growth on Binance
This shift can be primarily attributed to evolving regulatory pressures, especially the European Union’s Markets in Crypto-Assets (MiCA) framework. Furthermore, Binance’s decision to delist USDT for users in the EU by March 31st in order to comply with MiCA regulations is expected to further boost USDC’s ascent. Consequently, this raises pertinent questions regarding which stablecoin may dominate Binance’s global platform in the forthcoming months.
“As the MiCA framework reshapes the European crypto market, USDC appears poised to capitalize on regulatory shifts, potentially challenging Tether’s long-standing dominance.”
Earlier this week, Japan officially welcomed USDC as the first and only global dollar stablecoin approved for use following the Japan Financial Services Agency (JFSA) granting approval to SBI VC Trade as an Electronic Payments Provider under the new regulatory guidelines. This development makes SBI VC Trade the inaugural platform in Japan to list and distribute USDC.
Tether Troubles
The MiCA regulations, which came into effect in December 2024, aim to establish a cohesive regulatory framework for digital assets across Europe. Following the introduction of these regulations, leading crypto platforms such as Coinbase and Crypto.com have begun to remove non-compliant stablecoins like Tether’s USDT for users in the EU.
Tether has expressed concerns over the rapid pace of these transitions, warning that such urgency could lead to market disruptions. The company has also indicated that the implications of these regulations extend beyond USDT and could complicate the broader stablecoin landscape.
In response to the regulatory challenges posed by MiCA, Tether is pivoting towards its tokenization platform, Hadron, and has partnered with the Dutch firm Quantoz as part of its strategy for the European market. With the delisting of USDT in response to compliance demands, Tether has reiterated its commitment to developing Hadron and supporting Quantoz, while reassessing its roadmap for USDT’s future in Europe.
Hadron facilitates the creation of various digital assets, including stablecoins, bonds, stocks, and loyalty programs. Backed by Tether since 2024, Quantoz has introduced EURQ and USDQ, two newly launched stablecoins that are compliant with MiCA regulations.
The insights discussed herein highlight not just the immediate implications for Binance and its users, but also set the stage for a dynamic future in the stablecoin sector as regulatory landscapes continue to evolve.
