JPMorgan: USDC on-chain growth surpasses USDT, institutional adoption and regulatory compliance are key

ChainCatcher news, JPMorgan analysts say that Circle's USDC stablecoin has surpassed Tether's USDT in terms of on-chain activity and market capitalization growth.

Since the beginning of this year, USDC's market capitalization has increased from about $43 billion to approximately $74 billion, a growth of 72%, significantly higher than the 32% growth of USDT during the same period. Analysts point out that USDC's growth is attributed to a clearer regulatory framework, transparent reserve management, regular audits, and compliance advantages under the European MiCA regulations, along with a continuous increase in institutional adoption. In contrast, the non-MiCA authorized USDT has faced delisting from exchanges in Europe, while USDC has promoted on-chain settlements and merchant payments through integration with payment networks such as Visa, Mastercard, and Stripe. Additionally, the increase in decentralized finance activities of USDC on blockchains like Solana and Base, as well as Circle's Cross-Chain Transfer Protocol (CCTP) supporting secure cross-chain transfers, have also contributed to its growth.