JP Morgan: USDC on-chain growth surpasses USDT, institutional adoption and regulatory compliance key

According to JPMorgan analysts, Circle's USDC stablecoin has surpassed Tether's USDT in terms of on-chain activity and market cap growth. Since January this year, the USDC market cap has increased from about $43 billion to about $74 billion, an increase of 72%, significantly higher than the 32% increase in USDT over the same period. Analysts point out that the growth of USDC has benefited from a clearer regulatory framework, transparent reserve management, regular audits, and compliance under European MiCA regulations, while institutional adoption has continued to increase. In contrast, USDT, which was not authorized by MiCA, was taken down by exchanges in Europe, while USDC promoted on-chain settlement and merchant payments through integration with payment networks such as Visa, Mastercard, and Stripe. In addition, USDC's increased decentralized financial activities on blockchains such as Solana and Base, as well as Circle's Cross-Chain Transfer Protocol (CCTP) to support cross-chain secure transfers, also contributed to its growth.