In the third quarter of 2025, USDT—alongside USDC—absorbed most of the $45 billion that flowed into stablecoins. Custodians and compliance teams are tracking the shift because it ties market activity to two issuers and shapes both liquidity patterns and systemic risk. This consolidation is setting the rails for how dollar value moves across crypto venues during volatile conditions.
Data show USDT with more than 60% market share and USDC with about 20–25%. The split underlines how both tokens act as the main rails for dollar value inside crypto: USDT supplies deep liquidity, wide exchange coverage, and DeFi integration, while USDC offers public attestations and regulatory alignment that draw institutions.
The market impact of USDT – USDC
The joint inflows reflect demand for a dollar-linked shelter during macro and crypto volatility. As these rails concentrate flows, bid–ask spreads tighten and transfer fees fall when users move capital across venues, reinforcing their role in day-to-day market plumbing.
The duopoly is reshaping product design and compliance work, It streamlines trading and liquidity operations, but also funnels risk toward two balance sheets, giving more weight to reserve disclosure and regulator oversight.
USDT still faces questions about what backs its coins and how much of it is visible. USDC publishes attestations and follows U.S. money transmitter rules, which lowers counterparty risk for large players. DAI and USDe run different engines—DAI with overcollateralized crypto and USDe with delta-neutral derivatives—but their volumes remain small next to the top pair.
The next moves hinge on new rules and whether institutions shift allegiance. Product and compliance teams are watching how regulators react to the twin-token market and how hard they press for reserve transparency. The current setup is a working duopoly that accelerates trades but demands clearer books and tighter governance.
