USDC Surges Past Tether as Institutional Adoption Drives Stablecoin Shift

USDC has emerged as the dominant stablecoin in terms of transaction activity, accounting for approximately 70% of adjusted stablecoin transaction volume during the first half of 2026. This is a significant shift from previous years when Tether's USDT dominated both supply and transaction activity.

VISA's on-chain data shows that institutional adoption is increasingly flowing through USDC instead. The figures mark a significant change in the competitive landscape of the stablecoin market, with adjusted stablecoin transaction volume reaching a record $1.79 trillion in June 2026, up 63% from $1.1 trillion in May.

The growth of USDC's network effects is largely due to institutional adoption, with banks and financial institutions integrating it into payment, settlement, and treasury operations. Recent announcements from BNY and Standard Chartered have expanded services built around USDC, reinforcing Circle's position as the preferred settlement asset for regulated financial firms.

However, competition among stablecoin issuers is likely to shift from market capitalization toward transaction utility, regulatory compliance, and enterprise adoption as traditional financial institutions deepen their use of blockchain-based settlement and payment rails.