Visa’s Stablecoin Metrics Reveal USDC Dominance
Circle’s USDC has overtaken Tether’s USDT in stablecoin transaction volume, according to a new metric developed by Visa and Allium Labs. The data aims to filter out inorganic activity, providing a clearer picture of genuine transaction trends.
Key Findings:
- USDC Volume: $456 billion (last week)
- USDT Volume: $89 billion (last week)
- Market Share: USDC accounts for 50% of stablecoin transactions in 2024, despite Tether holding 68% of circulating supply.
👉 Explore how stablecoins are reshaping payments
Global Regulatory Moves on Stablecoins
Governments worldwide are advancing frameworks to regulate stablecoins, addressing risks tied to payments and financial stability.
United Kingdom’s Approach:
- Legislation Timeline: Expected by June/July 2024.
- Scope: Covers crypto exchanges, custody, and staking, bringing them under the Financial Conduct Authority (FCA) and Bank of England.
- Goal: Mitigate customer harm and systemic risks, especially for fiat-backed stablecoins.
U.S. Bipartisan Stablecoin Bill:
Proposals:
- 1:1 Reserves: Mandatory for issuers.
- Algorithmic Ban: Prohibits unbacked stablecoins.
- Dual Banking System: State/federal oversight for issuers.
- Sponsors: Senators Gillibrand (D-NY) and Lummis (R-WY), marking their third crypto regulation attempt since 2022.
👉 Learn about compliant crypto investments
Why USDC’s Lead Matters
- Trust: Backed by regulated financial institutions.
- Transparency: Regular audits vs. Tether’s limited disclosures.
- Utility: Preferred for DeFi and institutional use.
FAQs
Q: Is USDC safer than USDT?
A: USDC’s transparent reserves and compliance with U.S. regulations offer stronger safeguards.
Q: How will U.K. regulations affect crypto businesses?
A: Exchanges and custodians must adhere to FCA rules, increasing accountability.
Q: Are algorithmic stablecoins banned globally?
A: The U.S. bill proposes a ban; other regions may follow suit.
Q: What’s driving USDC’s transaction surge?
A: Growing adoption in institutional and cross-border payments.
Conclusion
Visa’s data underscores a shift in stablecoin dynamics, with USDC’s compliance-focused model gaining traction amid tightening regulations. For users, this signals a move toward more auditable and secure digital assets.