Regulatory recognition and launch of its own payment network
As of May 2025, USDC's market capitalization has nearly doubled since October 2024, from $34 billion to $60 billion, marking a historical high for the asset. In comparison, the market cap of the leading stablecoin, USDT, grew by only 25% during the same period. Due to this rapid growth, USDC's share of the stablecoin market has increased significantly, reaching 24.4%, according to monitoring service CoinMarketCap.
Regulatory recognition of USDC
In the summer of 2024, the European Union enacted the Markets in Crypto-Assets (MiCA) regulation, requiring companies that provide services with digital assets, including stablecoins, to obtain proper licenses.
As a result of MiCA's implementation, some stablecoins — including the leading Tether (USDT) — were forced to exit the EU market due to non-compliance with regulatory standards.
However, Circle, the company behind USDC, successfully obtained all necessary licenses, allowing it to operate within the European Union. This likely played a key role in USDC's sharp rise in market capitalization since October 2024.
Additionally, in February 2025, USDC and Circle's euro-pegged stablecoin EURC received recognition from the Dubai International Financial Centre (DIFC), one of the UAE's central financial regulators.
Circle's high level of regulatory acceptance across various markets, including the EU and the US, is mainly due to the transparency of its reserves, which are audited by the well-known firm Grant Thornton.
Circle's global payment network and integration into third-party services
Driven by the growing use of cryptocurrencies in international payments, more traditional payment systems are integrating digital assets into their offerings.
For example, in May 2025, global payment platform Stripe announced the launch of new financial products, including Stablecoin Financial Accounts.
This product will allow Stripe's clients to open accounts in stablecoins. Stablecoin Financial Accounts will support only USDC and USD Stablecoin (USDB).
The Stablecoin Financial Accounts platform will enable users to receive, store, and send stablecoins through Stripe's services. In terms of functionality, it closely resembles traditional bank accounts.
At the same time, in April 2025, Circle — the issuer of USDC — announced the launch of its own international payment infrastructure, the Circle Payments Network (CPN).
The Payments Network is designed as a next-generation system primarily for instant and transparent cross-border payments.
The new network from Circle aims to connect a wide range of financial entities, including:
- banks,
- neobanks,
- payment services,
- digital wallets and other financial products, including those tied to crypto assets.
According to analysts, Circle's new product poses a serious challenge to major payment giants like Visa and Mastercard.
Also in April, Circle partnered with Binance Pay, the financial service provider from the leading Web3-based crypto exchange. The collaboration aims to modernize global payments. According to media reports, USD Coin, rather than Tether, has become the primary payment tool, especially among new users of Binance Pay.
