The cryptocurrency exchange Binance has witnessed a significant increase in the share of USD Coin (USDC), rising from 0.48% to 8.26% over the past year. This surge is closely linked to the European Union’s MiCA legislation, which regulates the cryptocurrency sector, and Binance’s decision to remove USDT for its EU users. As questions arise regarding the global dominance of Tether’s USDT, USDC’s official approval in Japan has further bolstered its growth.
The Rise of USDC on Binance
According to data from CryptoQuant, USDC’s presence on Binance has skyrocketed by 1,621% in the last 12 months. The implementation of MiCA regulations has prompted cryptocurrency platforms in the EU to delist non-compliant stablecoins, giving USDC a competitive advantage. Binance’s announcement that it will not offer USDT to EU users starting March 31, 2025, has solidified USDC’s position in the region.
In Japan, SBI VC Trade became the first platform to officially list USDC. With the approval from the country’s financial regulator, JFSA, USDC has gained new momentum in the Asian market. These developments are interpreted as the beginning of a trend that could challenge Tether’s leadership in the global stablecoin market.
Challenges Ahead for Tether
The MiCA regulations are forcing cryptocurrency platforms in the EU to transition to compliant stablecoins. Major players like Coinbase and Crypto.com removing USDT from their platforms in the EU puts Tether’s market share at risk. Tether has warned that hastily implementing regulatory transitions could lead to market instability, prompting a reevaluation of its European strategy focusing on tokenization platforms such as Hadron and Quantoz.
Quantoz’s MiCA-compliant EURQ and USDQ stablecoins are part of Tether’s efforts to maintain its market presence in the EU. However, the ongoing delisting of USDT from major crypto platforms is driving users towards alternative coins. The critical question for the coming months will be whether Tether can sustain its global dominance.
