In a surprising twist for the cryptocurrency payments landscape, Tether’s USDT is now giving Circle’s USDC a run for its money on BitPay’s platform this year. The latest transactional data indicates a shift in user preference, with Tether tightening its grip on a market previously dominated by its rival.
Tether Gains Momentum
USDC transactions on BitPay were nearly twice those of USDT just last year, reflecting a clear preference among users. But in 2025, the tables have turned. Tether’s recent surge appears to be driven by a combination of strategic partnerships and increased merchant adoption. This uptick in USDT’s usage underscores a growing confidence among users and businesses alike in the stablecoin’s reliability and liquidity. This trend aligns with broader market movements, as seen in Bolt’s embrace of stablecoin payments for global marketplaces, highlighting the increasing role of stablecoins in digital commerce.
Industry insiders suggest that Tether’s robust liquidity and its established presence in the crypto ecosystem contribute significantly to this momentum. “Tether’s ubiquity in trading pairs across exchanges makes it a natural choice for payments,” says Alex Thompson, a crypto market analyst. “As more merchants seek stable and quick settlement options, USDT’s appeal broadens.”
The Stablecoin Showdown
This emerging trend is sparking discussions on the broader implications for stablecoins in digital payments. With Tether and Circle both vying for dominance, their strategies will be closely watched by investors and users. Circle’s USDC, known for its regulatory compliance and transparency, continues to have a stronghold in institutional markets. However, Tether’s expansive reach and high transaction volume present formidable competition.
In the backdrop of regulatory scrutiny and evolving market dynamics, stablecoins like USDT and USDC face unique challenges. Both have made headlines for different reasons—USDC for its regulatory adherence and Tether for its reserves and audits. Yet, the current shift in transaction preference on BitPay indicates that users are prioritizing liquidity and ease of use. For a deeper dive into the regulatory implications, see our coverage of the stablecoin bill heading to the House.
Changing Tides in Crypto Payments
The broader stablecoin market is also witnessing shifts, reflecting the dynamic nature of the cryptocurrency world. With the crypto market’s inherent volatility, stablecoins provide a semblance of stability, making them attractive for everyday transactions. Tether’s resurgence in payment platforms like BitPay could signal a broader trend towards integrating stablecoins into mainstream commerce.
Looking forward, the rivalry between USDT and USDC, especially on platforms facilitating crypto payments, will likely intensify. The key battlegrounds will include transaction fees, speed, and user trust—all critical factors for widespread adoption.
As we sail through the rest of 2025, the stablecoin ecosystem is poised for further evolution. Will Tether maintain its newfound lead, or will Circle’s USDC reclaim its former glory? The answer, while uncertain, will undoubtedly shape the future of digital payments.
Source
This article is based on: Tether USDT challenges Circle’s lead on BitPay payments in 2025
Further Reading
Deepen your understanding with these related articles:
- Wirex Launches Institutional-Grade Stablecoin Payments on Fireblocks
- Circle Mania Grips South Korea as Retail Investors Pile Into Stablecoin Play
- SoFi to Launch Blockchain Remittances With Stablecoins as Crypto Returns to Platform
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
