Tether USDt gains ground against Circle’s USDC on BitPay, despite USDC’s prior dominance on the platform. According to data shared by BitPay, USDC, which held an 85% transaction share in January 2024, saw its share drop to 56% by May 2025. In contrast, USDt climbed from 13% to 43% over the same period, reflecting a clear change in user and merchant preferences. This transition comes amid Circle’s high-profile public listing in June and its regulatory advantages under Europe’s Markets in Crypto-Assets Regulation (MiCA). Despite these strengths, Tether’s simplicity and user familiarity appear to have swayed the market’s momentum, particularly within payment flows. What Drives Tether Surge? Beyond transaction counts, Tether has established itself as the leading stablecoin by payment volume on BitPay. According to the crypto payment platform, USDT began capturing a significant share of processed stablecoin volume in March 2025, eventually surpassing 70% of total stablecoin volume on the platform. BitPay’s Chief Revenue Officer, Bill Zielke, noted that while USDC continues to hold the top spot in transaction counts, the volume shift to Tether is driven by both an increase in overall stablecoin transactions and a noticeable swing among existing users and merchants preferring USDT over USDC. Zielke added that although BitPay maintains a strong user base in Europe, its focus remains on expanding its reach within the United States. Divergent Strategies Amid Regulatory Shifts The competition between the two stablecoin issuers extends beyond user metrics, reflecting stark differences in regulatory strategy. Circle became the first global stablecoin issuer to secure MiCA approval in July 2024, positioning itself to comply with evolving European frameworks. In contrast, Tether has openly rejected MiCA compliance , citing concerns with specific regulatory provisions. Further, while Circle proceeded with a $1.05 billion public listing on June 5, Tether CEO Paolo Ardoino confirmed that his company has no plans for an IPO, maintaining a private operational structure. Despite USDC’s slip on BitPay, it has seen robust market capitalization growth, rising 88% year-over-year to $61.7 billion. Meanwhile, Tether’s market value climbed 40% to $158.3 billion during the same period, underscoring both stablecoins’ expanding footprint amid rising institutional and retail adoption. The post Tether Overtakes USDC in Payment Volumes on BitPay appeared first on TheCoinrise.com .
