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USDT now owns 63% of the stablecoin market. That’s per CoinGecko’s Top USD Stablecoins chart, and it’s a number that should make Circle’s executives a little uncomfortable. Circle’s USDC sits at roughly 25%. New entrants like USD1 from World Liberty Financial have made noise, but the Tether-Circle duopoly? Pretty much untouched.
The gap between these two companies isn’t just about market share — it’s about how they run their books. Tether holds higher-risk assets in its reserves, and that bet paid off: $10 billion in profits last year. Circle goes the other way entirely. No bitcoin, no gold, no secured loans. Conservative to the bone. That caution came with a cost — a $70 million loss in 2025, partly tied to expenses from its public offering push. And yet Circle’s stock has climbed over 50% this year, with a market cap sitting around $34 billion. Tether’s valuation? Murky. It’s privately held, so no one really knows the exact figure.
On reserves, the numbers get interesting fast.
Tether’s attestation puts its equity holdings at roughly $8.2 billion — about 4% of its market cap. Circle, on the other hand, holds just $76 million more in assets than circulating USDC, which works out to about 0.1% of its market cap. That’s a razor-thin cushion. Circle basically says it’s always been conservative, even before regulators told it to be. Whether that’s a strength or a limitation probably depends on who you ask.
Washington Ties and Ethical Heat
Both companies are spending real money in Washington. Tether’s most talked-about connection is Cantor Fitzgerald, which serves as a key custodian for Tether’s new USAT stablecoin targeting the U.S. market. But the relationship goes deeper than custody. Reports say Tether loaned money to a trust — Dynasty Trust A — that benefits Howard Lutnick’s children. Lutnick, who was nominated as commerce secretary, had his ties to Cantor Fitzgerald scrutinized hard during that process. Senators Elizabeth Warren and Ron Wyden have called for transparency on the loan. Its size remains undisclosed.
Tether hasn’t rushed to answer those questions.
Circle’s political footprint looks different but isn’t exactly clean either. The company donated to Trump’s inaugural committee. Coinbase, a Circle stakeholder, leaned on the legislative process around stablecoins — specifically delaying the CLARITY Act until stablecoin yields were restored. Lobbying budgets at both firms keep growing. The stablecoin industry has figured out that political capital is basically a product line at this point.
Market Moves: Pornhub, Drift, and Solana
Some of the most telling shifts are happening outside the lobbying offices. Pornhub switched from USDT to USDC for model payouts after PayPal’s exit. That’s a real-world use case moving in Circle’s direction, and it’s the kind of headline neither company loves to see in print.
On Solana, Tether moved the other direction. The company funded a bailout to transition Drift protocol’s settlement asset from USDC to USDT. Drift is a decentralized finance platform, and Tether stepping in with money to flip its core settlement currency is an aggressive play. It’s not subtle. Tether wants dominance across blockchain environments, not just in raw market cap terms.
And it’s working, at least so far. Sixty-three percent market share doesn’t lie.
The Cantor Fitzgerald partnership keeps expanding. Tether isn’t just using Cantor for custody — it’s woven into Cantor’s broader business operations around USAT. That kind of entanglement between a stablecoin issuer and a politically connected financial firm is exactly what Warren and Wyden are worried about. The loan to Dynasty Trust A sits at the center of those concerns, and the lack of a disclosed dollar amount makes it harder to assess how significant the conflict actually is.
Circle, meanwhile, keeps leaning into its public-company advantages. Trading status brings scrutiny, sure, but it also brings legitimacy that Tether can’t easily replicate. The $76 million asset surplus is thin, but Circle’s argument is that thin is fine when you’re not taking on risk in the first place.
Whether that argument holds if a real liquidity crunch hits — unclear.
Stablecoin adoption across Asia and emerging markets has grown sharply in recent years, putting more pressure on both companies to lock in their positions before the next wave of competitors arrives. USD1 from World Liberty Financial is watching. Others are probably coming.
For now, Tether’s 63% holds.
Hub: USDC price, news, and analysis
Frequently Asked Questions
What is Tether’s current stablecoin market share?
Tether’s USDT holds approximately 63% of the stablecoin market per CoinGecko’s Top USD Stablecoins chart, with Circle’s USDC at around 25%.
What is the controversy around Tether and Howard Lutnick?
Reports say Tether loaned money to Dynasty Trust A, a trust benefiting Howard Lutnick’s children. Senators Elizabeth Warren and Ron Wyden have called for transparency on the loan, whose size has not been disclosed.
Why did Circle post a loss despite strong stock performance?
Circle recorded a $70 million loss in 2025, partly due to expenses tied to its public offering process, even as its stock climbed over 50% and its market cap reached around $34 billion.
