Japanese investment bank Mizuho has announced that Circle’s stablecoin USDC has surpassed Tether’s USDT in transaction volume for the first time since 2019. In a recent research note, Mizuho mentioned an adjustment in its price target for Circle’s stock, increasing it from $100 to $120, after analyzing transaction volumes closely.

According to Mizuho’s findings, USDC achieved approximately $2.2 trillion in adjusted transaction volume year-to-date, while USDT reported about $1.3 trillion. They noted, “The data shows USDC vs. USDT volumes at 64% market share,” indicating a shift away from a long-standing trend where USDT usually led.

This transition is essential because, as Mizuho analysts pointed out, the dominant stablecoin will be the one preferred for daily transactions, rather than simply by market capitalization.

In a related context, the stock valuation of Circle, which debuted on the NYSE in June 2025, didn’t change significantly after Mizuho’s announcement, despite USDC’s lead in volume. Nevertheless, Tether continues to maintain the highest market capitalization of around $184 billion, compared to USDC’s $79 billion.

Ongoing Debate in US Government on Stablecoin Regulation

The legislative landscape in Washington, DC, remains uncertain as lawmakers struggle to reach a consensus on a digital asset market structure bill. This legislation, previously known as the CLARITY Act when it passed the House, has faced delays in the Senate amid ongoing discussions regarding stablecoin yields and ethics in the digital asset space.

John Thune, the Senate Majority Leader, stated recently that the senate is likely to prioritize legislation related to voting requirements ahead of advancing the market structure bill, which he doesn’t foresee being passed before April.