USDC supply grew from $73B in August to expected $78B by year-end as institutions shift. USDT supply remains dominant at $140B+, but growth is stalling. Tether must get MiCA approval or face deeper delisting risks. For retail: both remain usable, but institutional flows favor USDC.
Aave and Curve offer 2–3% APY on USDC lending, while USDT yields are 1.8–2.2% on the same protocols. Circle's August 3 reserve report (required under MiCA) proved full backing and regular audits. This transparency is attracting yield-seeking institutions over Tether.
The GENIUS Act (US stablecoin law) requires final implementing rules by July 2028. After that, only federally-licensed banks can issue stablecoins. Both USDC (Circle) and USDT (Tether) will need federal charters. USDC has a head start with existing MiCA compliance architecture.
If you hold USDT: It's still liquid globally, but regulatory risk is rising. Consider slowly rotating 50% to USDC or stablecoin alternatives like EUROC. If you lend stablecoin on DeFi: USDC offers better yields with lower counterparty risk. Rebalance before the next regulatory surprise.
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