Tether Surpasses USDC in Payment Volume Dominance on BitPay Platform

Tether's USDT has overtaken Circle's USDC in payment volumes processed through BitPay, marking a significant shift in stablecoin preferences despite USDC's previous market leadership. BitPay data reveals USDC's transaction share dropped from 85% in January 2024 to 56% by May 2025, while USDT surged from 13% to 43% during the same period.

This transition occurred despite Circle's strategic advantages, including its June public listing and compliance with Europe's Markets in Crypto-Assets Regulation (MiCA). Market analysis suggests Tether's operational simplicity and brand recognition have driven its adoption, particularly within payment ecosystems.

BitPay reports that USDT became the dominant stablecoin by processed volume in March 2025, eventually capturing over 70% of total stablecoin payments on the platform. Bill Zielke, BitPay's Chief Revenue Officer, noted that while USDC maintains superior transaction counts, the volume shift reflects both increased stablecoin usage overall and merchant preference for USDT.

The two stablecoin issuers demonstrate divergent strategic approaches. Circle secured MiCA approval in July 2024—becoming the first globally regulated stablecoin—while Tether rejected MiCA compliance over regulatory concerns. Their corporate strategies also differ markedly, with Circle completing a $1.05 billion public offering in June while Tether remains privately held.

Market capitalization figures show both stablecoins experiencing growth: USDC's value increased 88% to $61.7 billion year-over-year, while Tether expanded 40% to $158.3 billion, demonstrating robust institutional and retail adoption across sectors.