Will USDC Challenge USDT’s Dominance as Its Issuer Plans to Go Public?

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The stablecoin landscape is shifting rapidly, and a major development could redefine the hierarchy between the two leading dollar-pegged tokens: USDC and USDT. Circle, the issuer of USDC, has announced ambitious plans to expand its blockchain presence and go public via a SPAC merger—potentially unlocking new levels of institutional adoption and market credibility.

With a projected valuation of $4.5 billion and a growing footprint across decentralized finance (DeFi), traditional finance (TradFi) integrations, and global regulatory compliance, Circle's public listing could be the catalyst that propels USDC into a dominant position—challenging Tether’s long-held lead.

Let’s explore how Circle evolved, what the listing means for USDC, and why this moment may mark a turning point in the stablecoin race.

The Rise of Circle: From Fintech Startup to Crypto Powerhouse

Founded in 2013 in Boston, Circle began as a digital payments company offering cross-border money transfers through its product Circle Pay, earning comparisons to “America’s Alipay.” Initially focused on Bitcoin-based transfers and crypto wallet services, Circle gradually pivoted toward deeper involvement in the cryptocurrency ecosystem.

By 2016, the company shifted focus from consumer payments to institutional-grade crypto services. It launched Circle Trade, an over-the-counter (OTC) trading desk for large-volume transactions, and acquired the prominent exchange Poloniex. These moves signaled Circle’s ambition to become a full-service crypto financial group.

Then came the pivotal moment: in October 2018, Circle co-launched USDC with Coinbase, a fully reserved, dollar-backed stablecoin designed for transparency and regulatory compliance.

Over time, Circle streamlined its operations—selling off Poloniex, Circle Trade, and Circle Invest—to concentrate almost entirely on USDC issuance and ecosystem growth. Today, it operates as a lean but powerful entity focused on three core revenue streams:

This strategic refocusing has allowed Circle to double down on building trust, scalability, and interoperability—key ingredients for mainstream financial integration.

Why Compliance Gives USDC a Competitive Edge

While both USDC and USDT serve as dollar-pegged stablecoins, their underlying credibility differs significantly.

Tether (the issuer of USDT) has faced persistent scrutiny over reserve transparency and regulatory compliance. In contrast, Circle has prioritized legitimacy from day one:

👉 Discover how compliant digital assets are reshaping global finance

This commitment to regulation has paid off. According to The Block, USDC’s market share has surged from 6% to nearly 25%, while USDT’s dominance has dropped from 86% to around 60%. With over $25 billion in circulation as of early 2025—and targeting $190 billion by year-end—USDC is closing the gap fast.

Expanding Across Blockchains: Building Ubiquity

To increase adoption, Circle is aggressively expanding USDC’s availability beyond Ethereum.

After launching on Tron, Circle plans to deploy USDC on nine additional blockchains:

This multi-chain strategy enhances accessibility, reduces transaction costs, and embeds USDC deeper into diverse DeFi ecosystems—from high-speed layer-1s to niche smart contract platforms.

Such broad deployment strengthens USDC’s utility not just as a store of value, but as the preferred medium for cross-chain liquidity and programmable money.

DeFi Adoption: Why Protocols Prefer USDC

One of the biggest drivers behind USDC’s growth is its dominance in decentralized finance (DeFi).

Most DeFi protocols favor USDC over USDT for several reasons:

As automated market makers (AMMs) like Uniswap and Curve enable users to choose their preferred stablecoin pairs, many opt for ETH/USDC pools due to lower perceived risk.

👉 See how developers are integrating stablecoins into next-gen dApps

This trend has turned USDC into the de facto standard for DeFi liquidity, especially among institutional-grade protocols and regulated lending platforms.

Bridging TradFi and DeFi: Circle’s Strategic Vision

Circle isn’t just building another crypto asset—it’s constructing a bridge between traditional finance and decentralized ecosystems.

In 2025, the company launched its DeFi API, enabling banks, hedge funds, and fintech firms to seamlessly access DeFi protocols through secure, compliant interfaces. This lowers the barrier for institutions wary of direct blockchain exposure.

Real-world use cases are already emerging:

These developments signal that USDC is transitioning from a niche crypto tool to a legitimate financial instrument.

Can You Earn Yield on USDC?

Despite being a stablecoin designed primarily for stability, USDC offers compelling yield opportunities—often surpassing traditional savings accounts.

Platforms like Compound and Coinbase offer ~4% APY on USDC deposits—far above typical bank rates. But more advanced options exist for those seeking higher returns:

👉 Explore secure ways to generate yield with digital assets

While platforms like Matrixport previously offered high-yield products, users should always conduct due diligence when selecting custodians or yield providers—focusing on security, transparency, and regulatory alignment.

What Does Circle’s Public Listing Mean for USDC?

Going public via SPAC merger under ticker CRCL marks a watershed moment—not just for Circle, but for the entire crypto industry.

Here’s what it could mean for USDC:

✅ Increased Institutional Trust

Public reporting requirements will enhance transparency, making USDC even more attractive to conservative investors and regulated entities.

✅ Greater Market Liquidity

With expanded capital from public markets, Circle can accelerate innovation, improve infrastructure, and support larger-scale integrations.

✅ Broader Ecosystem Development

Funds raised may fuel development of new financial products based on USDC—such as tokenized bonds, ETFs, or programmable payroll systems.

Long-term, this positions USDC not just as a stablecoin, but as foundational infrastructure for a new financial system—one where dollars move instantly, globally, and programmatically.

Frequently Asked Questions (FAQ)

Q: Is USDC safer than USDT?

A: Many experts consider USDC safer due to its transparent reserves, regular audits, and strong regulatory compliance. While both claim 1:1 USD backing, USDC’s issuer—Circle—is more transparent and licensed across multiple jurisdictions.

Q: Where can I use USDC?

A: USDC is accepted across hundreds of DeFi platforms, centralized exchanges, payment networks (like Visa), and select merchants. It's also used for remittances, trading pairs, yield farming, and cross-border transfers.

Q: Does holding USDC generate income?

A: Yes. You can earn yield by depositing USDC into lending protocols (e.g., Aave), liquidity pools (e.g., Curve), or interest-bearing accounts offered by exchanges like Coinbase or OKX.

Q: How does Circle make money from USDC?

A: Circle earns revenue from interest on the cash reserves backing USDC, transaction fees from minting/burning tokens, and services like its DeFi API and TTS platform.

Q: Could USDC surpass USDT in market cap?

A: It’s possible. While USDT still leads in total supply (~$83B vs ~$25B), USDC’s growth rate is faster thanks to institutional adoption, DeFi preference, and regulatory clarity. If current trends continue, parity could be reached within a few years.

Q: Is Circle’s SPAC merger confirmed?

A: As of early 2025, Circle has formally announced plans to go public via SPAC with a $4.5B valuation. Final approval is pending SEC review and shareholder confirmation.

Final Thoughts: The Future of Stablecoins Is Being Rewritten

Circle’s journey—from fintech startup to potential public company—mirrors the maturation of the entire digital asset industry. With regulatory clarity, institutional demand, and technological innovation converging, USDC stands at the forefront of a new era in finance.

While USDT remains the largest stablecoin by market cap, its lead is no longer unassailable. USDC’s combination of compliance, transparency, and strategic partnerships gives it a strong foundation for long-term dominance.

As more traditional players enter crypto—and demand safe, auditable dollar equivalents grows—USDC may very well become the gold standard for digital dollars worldwide.

The race isn’t over. But the momentum? It’s clearly shifting.