Is USDT Losing Ground? EU MiCA and USDC and RLUSD Rising
Date: 2025-01-10 Author: Henry Casey Categories: CRYPTO PAYMENTS
USDT, which has been the leading stablecoin in the market for years, faces significant challenges in 2025. The introduction of EU MiCA regulations on December 30, 2024, requiring stablecoin issuers to hold 60% of their reserves in EU banks, was a turning point. This tightening of regulations has led to significant outflows from Tether. Just a few days before MiCA came into effect, $4 billion in USDT was withdrawn, the largest outflow since the FTX crash in 2022.
Tether’s market cap is currently $137.5 billion, down $3.5 billion from two weeks ago. These figures raise doubts among investors, given the growing popularity of USDC and RLUSD.
Strengthening the Position of Competitors: USDC and RLUSD Successes
The growing pressure on Tether contrasts with the successes of its competitors. Circle with their USDC was able to prepare for MiCA requirements in advance, receiving approval in mid-2024. Thanks to this, USDC has become the preferred choice for European exchanges, including Coinbase and Binance, which are now actively promoting this stablecoin. Since receiving the license, USDC's capitalization has grown by $2 billion.
In turn, Ripple introduced RLUSD in December 2024. This stablecoin, compatible with the XRP Ledger and Ethereum networks, immediately attracted attention due to its high transaction speed and strict compliance with new regulations.
RLUSD: Ripple's Big Plans
2025 could be a turning point for Ripple. Success in the litigation with the SEC and cooperation with large exchanges pave the way for active promotion of RLUSD. Ripple President Monica Long confirmed that the company plans to expand RLUSD’s presence on leading exchanges.
Ripple is also actively developing its payment infrastructure, which has doubled its transaction volume over the past year. Stablecoins like RLUSD will be an important element of this ecosystem, providing businesses with an effective alternative to traditional banking solutions.
In addition, Ripple’s partnership with Chainlink could integrate RLUSD into decentralized finance ecosystems. This will create additional opportunities for both traditional and DeFi users.
What’s next?
While USDT maintains its leadership, accounting for 66% of the stablecoin market, its position looks fragile. MiCA was an important milestone, showing that transparency and compliance are becoming key factors in the battle for market share.
Again, USDC is solidifying its reputation as a safe stablecoin, while RLUSD is rapidly gaining popularity thanks to Ripple’s innovation and easy integration into DeFi. 2025 promises to be a time of change in the stablecoin world, with Tether's position depending on its ability to adapt to new conditions.
