{"id":60471,"date":"2025-10-02T15:14:33","date_gmt":"2025-10-02T15:14:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/usdt-usdc-duopoly-in-stablecoin-declines-as-competition-and-regulation-reshape-the-market\/"},"modified":"2025-10-02T15:14:33","modified_gmt":"2025-10-02T15:14:33","slug":"usdt-usdc-duopoly-in-stablecoin-declines-as-competition-and-regulation-reshape-the-market","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/usdt-usdc-duopoly-in-stablecoin-declines-as-competition-and-regulation-reshape-the-market\/","title":{"rendered":"USDT, USDC duopoly in Stablecoin declines as competition and regulation reshape the market"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/10\/20251002_1835_Stablecoin-Revolution_simple_compose_01k6jga698fhz9n2gzjkypnq4q-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/10\/20251002_1835_Stablecoin-Revolution_simple_compose_01k6jga698fhz9n2gzjkypnq4q-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/10\/20251002_1835_Stablecoin-Revolution_simple_compose_01k6jga698fhz9n2gzjkypnq4q-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/10\/20251002_1835_Stablecoin-Revolution_simple_compose_01k6jga698fhz9n2gzjkypnq4q-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li data-start=\"181\" data-end=\"546\">USDT and USDC drop to 83.6% market share as rivals like USDe, PYUSD, and bank coins gain ground.<\/li>\n<li data-start=\"181\" data-end=\"546\">Ethena\u2019s USDe surges to $14.7B, leading new yield-bearing stablecoins reshaping the market.<\/li>\n<li data-start=\"181\" data-end=\"546\">ING, UniCredit, JPMorgan, and Citi push into stablecoins, challenging Tether and Circle\u2019s dominance.<\/li>\n<\/ul>\n<p data-start=\"181\" data-end=\"546\">Tether\u2019s USDt (USDT) and Circle\u2019s USDC (USDC), the two largest stablecoins by market capitalization, are showing signs of losing their long-standing dominance in the digital asset sector.<\/p>\n<p data-start=\"181\" data-end=\"546\">Despite both tokens growing in absolute market cap, their combined market share has fallen by more than 5% over the past year, suggesting a shifting landscape for stablecoins.<\/p>\n<p data-start=\"548\" data-end=\"878\">According to data from DefiLlama and CoinGecko, USDT and USDC\u2019s share of the stablecoin market dropped from 89% a year ago to 83.6% as of October 2025.<\/p>\n<p data-start=\"548\" data-end=\"878\">Industry analysts say this marks the beginning of a new phase in which alternative issuers \u2014 including startups and banks \u2014 are positioning themselves to challenge the duopoly.<\/p>\n<h2 data-start=\"885\" data-end=\"926\">USDT and USDC\u2019s market share decline<\/h2>\n<p data-start=\"928\" data-end=\"1207\">The peak of USDT and USDC\u2019s combined dominance came in March 2024, when the stablecoin market was valued at $140 billion.<\/p>\n<p data-start=\"928\" data-end=\"1207\">At that time, Tether held approximately $99 billion in circulation, and Circle\u2019s USDC accounted for $29 billion, together representing 91.6% of the market.<\/p>\n<p data-start=\"1209\" data-end=\"1438\">Since then, the dominance has steadily declined.<\/p>\n<p data-start=\"1209\" data-end=\"1438\">By October 2024, USDT and USDC represented 89% of the sector, and at present, they hold just 83.6%.<\/p>\n<p data-start=\"1209\" data-end=\"1438\">That reflects a 5.4% drop over the past year and a 3.4% decline since January.<\/p>\n<p data-start=\"1440\" data-end=\"1811\">Nic Carter, a partner at Castle Island Ventures, highlighted the trend in a post on X titled <em data-start=\"1533\" data-end=\"1570\">\u201c<\/em>The stablecoin duopoly is ending<em data-start=\"1533\" data-end=\"1570\">.\u201d<\/em><\/p>\n<p data-start=\"1440\" data-end=\"1811\">He attributed the decline to three primary factors: competition from intermediaries, an intensifying race to attract users with yield-bearing stablecoins, and shifting regulatory dynamics following the introduction of the US GENIUS Act.<\/p>\n<h2 data-start=\"1818\" data-end=\"1856\">New Stablecoin challengers emerge<\/h2>\n<p data-start=\"1858\" data-end=\"2085\">Carter noted that several new players have gained traction in the past year, reshaping the stablecoin landscape.<\/p>\n<p data-start=\"1858\" data-end=\"2085\">Among them are Sky\u2019s USDS (USDS), Ethena\u2019s USDe (USDE), PayPal\u2019s PYUSD (PYUSD), and World Liberty\u2019s USD1 (USD1).<\/p>\n<p data-start=\"2087\" data-end=\"2294\">Ethena\u2019s USDe has been particularly notable, growing to a $14.7 billion supply by offering holders yields derived from crypto basis trades. Carter described USDe as \u201cthe biggest success story of the year.\u201d<\/p>\n<p data-start=\"2296\" data-end=\"2627\">Other issuers, including Ondo with USDY, Paxos with USDG, and Agora with AUSD, are also entering the market with similar yield-bearing structures.<\/p>\n<p data-start=\"2296\" data-end=\"2627\">While regulatory scrutiny has intensified under the GENIUS Act, particularly around yield products, Carter believes the trend of offering returns to stablecoin holders will continue.<\/p>\n<p data-start=\"2629\" data-end=\"2805\">Meanwhile, Circle is exploring ways to introduce yield features for USDC in partnership with Coinbase, signaling that incumbent issuers may adapt to the competitive pressure.<\/p>\n<h2 data-start=\"2812\" data-end=\"2849\">Banks enter the Stablecoin arena<\/h2>\n<p data-start=\"2851\" data-end=\"3114\">Beyond fintech startups, traditional banks and financial institutions are also moving into the sector.<\/p>\n<p data-start=\"2851\" data-end=\"3114\">Carter suggested that bank-led stablecoin consortia have the strongest potential to rival Tether, as no single bank has the reach to scale a stablecoin alone.<\/p>\n<p data-start=\"3116\" data-end=\"3458\">Recent developments support this prediction.<\/p>\n<p data-start=\"3116\" data-end=\"3458\">In September, Dutch bank ING announced a joint venture with Italy\u2019s UniCredit and seven additional European lenders to build a euro-denominated stablecoin.<\/p>\n<p data-start=\"3116\" data-end=\"3458\">The project, designed to comply with Europe\u2019s Markets in Crypto-Assets (MiCA) regulation, is expected to launch in the second half of 2026.<\/p>\n<p data-start=\"3460\" data-end=\"3665\">In the US, a stablecoin initiative involving JPMorgan and Citigroup has also been reported, with Carter predicting that such collaborations could fundamentally alter the balance of power in the market.<\/p>\n<p data-start=\"3667\" data-end=\"3963\">As competition accelerates, USDT and USDC may retain their leading roles but face an increasingly fragmented environment.<\/p>\n<p data-start=\"3667\" data-end=\"3963\">The shift marks a critical phase for the industry, where regulatory oversight, yield innovation, and institutional adoption are set to reshape the global stablecoin market.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/usdt-usdc-duopoly-in-stablecoin-declines-as-competition-and-regulation-reshape-the-market\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) USDT and USDC drop to 83.6% market share as rivals like USDe, PYUSD, and bank coins gain ground. Ethena\u2019s USDe surges to $14.7B, leading new yield-bearing stablecoins reshaping the market. ING, UniCredit, JPMorgan, and Citi push into stablecoins, challenging Tether and [&hellip;]<\/p>\n","protected":false},"author":3947362390,"featured_media":60472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/60471"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362390"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=60471"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/60471\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/60472"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=60471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=60471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=60471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}