The world’s largest stablecoins are increasingly becoming chain-specific financial products, with Tether’s USDt (USDT) and Circle’s USDC (USDC) playing distinct roles in the crypto ecosystem rather than competing head-on.
The dunes Overview of digital assets find that USDT massively dominates on-chain payments. During the first half of 2026, the largest stablecoin settled approximately $95 billion in identified trade payments, compared to $14 billion for the second-largest USDC. It also accounted for about 92% of the $48 billion in business-to-business payment volume. On Tron, USDT’s largest network, around 93% of the token supply is held in regular wallets rather than on exchanges, highlighting its role as a payments and funds transfer asset.
USDC, meanwhile, has established itself as the dominant stablecoin in decentralized finance. On-base USDC processed approximately $2.6 trillion in transfer volume in June, the highest of any token chain pair, while on Ethereum this stablecoin processed another $1.6 trillion.
Basis USDC recorded a daily velocity of around 20 times its circulating supply in June, reflecting its heavy usage in trading and DeFi. Source: Dune
The results suggest that the traditional USDT versus USDC narrative is becoming less and less useful. Instead, each stablecoin is carving out its own niche, with USDT dominating payments and USDC supporting much of crypto trading and DeFi activity.
USDT’s supply is split almost evenly between Tron and Ethereum, while USDC remains heavily focused on Ethereum despite its expansion to newer blockchains. Source: Dunes
The results come as the two digital assets continue to dominate the stablecoin market. Together, they account for about 83% of the industry’s roughly $315 billion market capitalization, according to Dune, which has tracked more than 200 stablecoins across multiple blockchains.
Related: UN agency moves Stellar blockchain payments initiative beyond pilot stage
US lawmakers reshape stablecoin rules
The stablecoin sector has gained momentum in the United States following the adoption of the GENIUS law. Signed into law in 2025, GENIUS established the first federal regulatory framework for payment stablecoins, paving the way for banks and other companies to issue digital assets pegged to the U.S. dollar.
Lawmakers are currently debating the CLARITY Act, which would establish a broader market structure for digital assets by defining when crypto assets fall under the jurisdiction of the U.S. Securities and Exchange Commission or the U.S. Commodity Futures Trading Commission. Although the bill does not directly regulate stablecoins, it would shape the broader regulatory environment in which stablecoin issuers, exchanges, and DeFi platforms operate.
CLARITY cleared the Senate Banking Committee in May and could receive a full Senate vote before the August recess, although Galaxy has recently reduced its chances of passing before the break, at 50%, as lawmakers are running out of time.
Review: Kraken’s $600 million stablecoin company and Huione scandal deepen: Asia Express
