In 2025, a significant shift has taken place in the stablecoin landscape on the BitPay payment platform: Tether’s USDT has surged in adoption, while Circle’s USDC has seen a notable decline in usage. This transformation marks a pivotal moment in the ongoing competition between the two leading dollar-pegged cryptocurrencies, especially within real-world transaction environments.
The Rise of USDT on BitPay
Just a year ago, USDC dominated stablecoin transactions on BitPay. In January 2024, it accounted for 85% of transaction volume, leaving USDT with a mere 13% share. However, by May 2025, the tide had turned dramatically. USDC’s transaction share dropped to 56%, while USDT climbed to 43%—a 30-percentage-point surge that signals growing merchant and consumer preference.
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But the change isn’t limited to transaction counts. When it comes to actual payment volume, USDT has taken a commanding lead. Starting in March 2025, USDT surpassed USDC in total value processed through BitPay, eventually accounting for over 70% of stablecoin payment volume on the platform. This shift reflects not just increased adoption, but also higher-value transactions being settled in USDT.
Why Are Users Switching to USDT?
Several factors contribute to USDT’s growing dominance on BitPay:
- Merchant preference: Many merchants now favor USDT due to its deeper liquidity and broader availability across crypto wallets and exchanges.
- User familiarity: As the longest-standing and most widely used stablecoin, USDT benefits from strong network effects.
- Transaction efficiency: Users report faster processing times and lower fees when using USDT on certain networks supported by BitPay.
- Global accessibility: Despite regulatory scrutiny, USDT remains accessible in more regions than USDC, which adheres to stricter compliance frameworks.
While Circle has positioned USDC as the “compliant choice” under regulations like the EU’s Markets in Crypto-Assets Regulation (MiCA)—gaining formal approval in July 2024—Tether has taken a different path. The company has publicly criticized aspects of MiCA and confirmed it has no intention of complying with the framework. This stance may appeal to users who prioritize decentralization and global access over regulatory alignment.
Regulatory Divergence: Compliance vs. Autonomy
The contrast between Circle and Tether extends beyond market performance—it reflects two opposing philosophies in the crypto ecosystem.
Circle pursued a traditional financial route by going public in June 2025, becoming the first major stablecoin issuer to trade on public markets. This move bolstered investor confidence and emphasized transparency through audited reserves and regulatory cooperation.
Tether, on the other hand, remains private. Its CEO has explicitly stated there are no plans for an IPO, reinforcing the company’s commitment to operating outside conventional financial structures. While this approach raises questions for some institutional players, it resonates with users who value financial sovereignty and resistance to centralized oversight.
This ideological divide is now playing out in real-time on platforms like BitPay, where practical utility often outweighs regulatory pedigree.
Market Cap Growth vs. Real-World Usage
Interestingly, while USDC is losing ground on BitPay, it continues to experience strong growth in overall market capitalization. Over the past 12 months, USDC’s market cap rose 88%, from approximately $33 billion to $61.7 billion. In contrast, USDT’s market cap increased by 40%, climbing from $112.5 billion to $158.3 billion.
Year-to-date in 2025, USDC’s market value has grown by 41%, compared to just 15.5% for USDT. This suggests that institutional inflows and reserve expansions are still favoring USDC, even as everyday users and merchants increasingly choose USDT for payments.
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The data reveals a key insight: market cap growth does not always correlate with transactional dominance. While USDC strengthens its position in banking and institutional finance, USDT is winning in the arena of day-to-day crypto commerce.
Core Keywords and SEO Strategy
To align with search intent and improve visibility, the following core keywords have been naturally integrated throughout this analysis:
- USDT
- USDC
- BitPay
- stablecoin adoption
- Tether
- Circle
- crypto payments
- MiCA regulation
These terms reflect high-volume search queries related to stablecoin trends, regulatory developments, and real-world blockchain use cases.
Frequently Asked Questions
Why is USDT gaining popularity over USDC on BitPay?
USDT is gaining traction due to its widespread availability, stronger liquidity, and faster settlement on supported blockchains. Merchants and users often prefer it for its reliability and ease of use across different platforms.
Does USDC’s regulatory compliance give it an advantage?
Yes—especially in institutional and regulated markets. USDC’s adherence to frameworks like MiCA makes it a preferred choice for banks, fintechs, and compliant exchanges. However, this doesn’t guarantee dominance in peer-to-peer or merchant payment scenarios.
Is USDT safe if it doesn’t comply with MiCA?
While Tether does not comply with MiCA, it maintains regular attestations of its reserves and operates globally. Safety depends on user priorities: those valuing decentralization may accept lower regulatory alignment in exchange for broader access.
Could USDC regain its lead on BitPay?
It’s possible if Circle enhances incentives for merchants or expands integration with more payment rails. However, reversing the current momentum would require significant strategic shifts.
Are other stablecoins competing on BitPay?
Currently, USDT and USDC dominate. Other stablecoins like DAI or PYUSD have minimal presence on the platform, making this primarily a two-player race.
What does this mean for the future of crypto payments?
The shift toward USDT suggests that utility and accessibility are becoming more important than regulatory branding in real-world crypto transactions. This could influence how other payment processors design their stablecoin offerings.
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Conclusion
The battle between USDT and USDC is more than a competition between two tokens—it’s a reflection of broader tensions within the cryptocurrency ecosystem: decentralization versus compliance, global access versus regulatory approval, and grassroots adoption versus institutional trust.
On BitPay, the scales have clearly tipped toward practical utility, with Tether’s USDT emerging as the preferred choice for payments despite Circle’s regulatory achievements. Yet, both stablecoins continue to grow in value and influence, serving different segments of the digital economy.
As the crypto payment landscape evolves, platforms like BitPay will remain critical barometers of real-world adoption—where usage patterns speak louder than whitepapers or compliance announcements. For users, developers, and investors alike, understanding these shifts is essential to navigating the future of money.