The divergence of Tether and Circle in the stablecoin market

Tether expands through El Salvador and US Treasury holdings

Tether maintains a $181.773 billion market cap for USDT. CEO Paolo Ardoino claims USDT is the "stronghold for the US dollar hegemony" and notes that Tether owns more US Treasuries than countries like Germany or Australia. Tether reported $113 billion in US Treasury holdings at the end of 2024. The company relocated its headquarters to El Salvador in January 2025 after it obtained a Digital Asset Service Provider license. CFO Simon McWilliams leads the effort to obtain a full financial audit from a Big Four firm like KPMG. Chairman Giancarlo Devasini focuses on macroeconomic strategy while the company prepares its US-based stablecoin, USAT, with advisor Bo Hines. Tether’s relocation to El Salvador in January 2025 after receiving a Digital Asset Service Provider license follows its decision to move away from its long-term base in the British Virgin Islands. Tether reported $13 billion in net profits for 2024 and remains in talks for a valuation of $500 billion. The company paid a $41 million civil penalty to the CFTC in 2021 and an $18.5 million settlement to the New York Attorney General in 2021. Tether serves over 550 million users worldwide and invests in Bitcoin mining.

Circle targets regulatory clarity and institutional scale

Circle achieved MiCA compliance after it secured an electronic money institution license from France’s ACPR. This status makes USDC the first global stablecoin issuer to meet these European Union requirements. While Circle manages its reserves with BlackRock, Tether holds a mix of Treasuries, gold, and bitcoin. The company’s market share in the EU collapsed after the delistings from major exchanges like Binance and Kraken.

Circle’s CEO Jeremy Allaire says adherence to MiCA brings digital currency to mainstream scale. Dante Disparte, Circle’s Chief Strategy Officer, says compliance through the French license is a step for the digital financial ecosystem. You already know that liquidity often dictates which token traders select on offshore exchanges. Circle’s June 2025 IPO raised $1.2 billion, and the company is listed on the NYSE under the ticker CRCL. Circle reported $770 million in revenue for the fourth quarter of 2025. USDC reserves consist only of cash and short-dated Treasuries. USDC processed $11.9 trillion in on-chain volume in the fourth quarter of 2025. USDT processes roughly $156 billion annually in small payments of $1,000 or less.

Market momentum and regulatory divides

USDC grew 72% year-over-year while USDT supply saw recent declines. Tether’s USDT supply relies heavily on the TRON network, which carries over 60% of its total supply. Most USDT volume moves through emerging markets in Latin America and Asia for remittances. USDC leads in regulated payments and institutional settlement because it follows the GENIUS Act and MiCA. The USDT market cap is 2.5 times larger than USDC.

The GENIUS Act, signed into law in July 2025, requires 100% backing in liquid assets and annual audits for the largest issuers. Circle meets these requirements through its existing US licensing. Tether is not eligible for the GENIUS Act because it is not US-domiciled. Tether’s USDT once traded as low as $0.9485 on Kraken during the 2022 Terra collapse. USDC briefly fell to $0.87 in March 2023 when Silicon Valley Bank collapsed. USDT trading volumes lead USDC. USDT supply stands at approximately $183.34 billion as of September 2026. Which firm will secure the largest share of the $2 trillion stablecoin market projected for 2028? USDC is the better choice for regulated institutional flows, while USDT remains the leader for global trading liquidity.