Circle’s USDC Push Challenges USDT Dominance as Regulatory Landscape Evolves

Circle’s recent application for a national trust bank charter signals a strategic shift in the stablecoin sector, positioning USDC as a frontrunner under the looming GENIUS Act. The proposed First National Digital Currency Bank WOULD enable self-custody of reserves and institutional digital asset services, though without deposit-taking authority. This move follows Circle’s $18 billion IPO and underscores its commitment to regulatory compliance, potentially reshaping the competitive landscape against USDT. As of July 2025, this development highlights the growing institutionalization of stablecoins and sets the stage for a new era in digital asset frameworks.

Circle’s US Trust Bank Bid Signals Potential Shift in Stablecoin Dominance

Circle’s application for a national trust bank charter marks a strategic pivot toward regulatory compliance as the GENIUS Act looms. The proposed First National Digital Currency Bank would enable self-custody of reserves and institutional digital asset services—though without deposit-taking authority. This MOVE follows Circle’s $18 billion IPO and positions USDC as a frontrunner for forthcoming U.S. stablecoin frameworks.

Tether’s USDT maintains a 62.5% global market share, but its offshore-heavy usage contrasts with Circle’s domestic regulatory alignment. Liquidity and exchange integrations sustain USDT’s dominance, yet Congressional action could recalibrate the competitive landscape. The OCC’s decision on Circle’s charter may accelerate the institutionalization of stablecoins in traditional finance corridors.

Tron Overtakes Dogecoin With $26 Billion Market Cap as Stablecoin Use Soars

Tron's market capitalization has surged to $26 billion, eclipsing Dogecoin's $24.6 billion valuation. The blockchain now processes over 50% of all USDT transactions, with $80.7 billion in Tether volume flowing through its network—more than ethereum handles. This dominance stems from Tron's faster settlement times and negligible fees, structural advantages that have solidified its position as infrastructure for stablecoin transfers.

While TRX posted modest weekly gains of 1.05%, its growth reflects utility-driven adoption rather than speculative trading. Dogecoin's lack of real-world use cases becomes increasingly apparent as investors shift focus toward functional blockchain networks. The market is witnessing a fundamental revaluation where technological capacity outweighs meme coin popularity.

Institutional capital appears to be flowing toward platforms with demonstrable on-chain activity. Tron's ascent past Dogecoin in market rankings signals this broader transition—from hype cycles to measurable utility as the primary value driver in digital assets.

USDC Gains Ground as Key Liquidity Provider for Bitcoin Trading Pairs

Circle's USDC stablecoin is reshaping Bitcoin market dynamics, now supporting 25% of the 1% liquidity depth for BTC trading pairs. The regulated dollar-pegged asset has seen its share of BTC liquidity nearly double since January 2025, climbing from 15% to 24% of total market depth.

While Tether's USDT maintains dominance in overall stablecoin volume, USDC's structural advantages are becoming apparent in liquidity provision. The stablecoin's resurgence comes as its circulating supply returns to 2023 levels, erasing bear market losses and signaling renewed institutional confidence.

Coinbase's influence continues to drive USD-denominated BTC trading, accounting for 19% of daily volumes. However, USDC's 10.5% volume share understates its growing role as a market maker's tool - liquidity pools are deepening even as spot activity fluctuates.