Digital dollars in the fight for the stablecoin market and the future of finance

Stablecoins under the microscope: why digital dollars have taken over the crypto market

Stablecoins, or cryptocurrencies that maintain a fixed value, are now an important part of the digital-asset market. Most of them track the U.S. dollar at a 1:1 ratio. For many users, they offer a convenient way to move funds between the crypto world and traditional finance without having to sell immediately into regular currency.

In practice, that also matters for taxes. Selling bitcoin and swapping it for a stablecoin does not, under many rules, end the transaction. Tax is triggered only when the funds are converted back into traditional currency. That is why digital dollars have become, for part of the market, a kind of safe parking spot for capital.

The biggest names are USDT and USDC. According to data cited in a market analysis from 10 June 2026, Tether had a market capitalization of USD 186 814 144 415, while USD Coin reached USD 75 001 400 553. Third place went to USDS, formerly DAI, with a value of USD 10 586 048 221.

Against the broader segment, the weakness of euro-based stablecoins is also clear. EURC, the token issued by Circle, had a market capitalization of USD 435 million according to those data, putting it well outside the leading group. That shows the crypto market remains heavily dollar-denominated, despite European regulation.

Where issuers’ profits come from — and why they stir so much debate

The stablecoin business model is simple. A user deposits a real dollar, and the issuer gives them a digital token in return. The funds received are then invested in safe, short-term U.S. government bonds. It is the issuer, not the token holder, that keeps the interest.

That is exactly why stablecoins have become so profitable. According to views cited by the ECB (European Central Bank), they resemble the old money-market funds, but without passing the gains on to customers. For companies such as Tether and Circle, that means a steady stream of revenue from reserves alone.

In a Reuters analysis from 8 June 2026, stablecoins were compared to the digital piping and plumbing of modern finance. It is an apt description. Whoever controls the flow also controls the fees and liquidity.

The differences between USDT and USDC mainly concern transparency and reserves. In the view of some, USDC has a clearer backing in cash and U.S. bonds, and its structure is better supervised. Others point out that USDT has massive liquidity and has weathered repeated market tests for years, despite questions about full transparency.

Europe tightens the rules, but it will not clear the market

Most of the attention now is on the MiCA regulation, which is bringing order to the crypto market in the European Union. In practice, it means stricter requirements for stablecoin issuers and greater emphasis on holding reserves within the European financial system.

That does not mean digital dollars will disappear from Europe, though. More likely, only projects that meet the regulatory requirements will remain on the market. In that group, USDC is likely to fit in more easily, since its issuer has already obtained the necessary licenses in the EU.

The situation for USDT remains more difficult. Some European platforms are limiting its availability because the project has not fully adapted to EU rules. At the same time, a broad, competitive euro stablecoin market has not emerged. That is a result of regulation, but also of weak liquidity and limited demand for such solutions.

There is also the issue of security in the background. Technically, both USDT and USDC can freeze funds and block addresses. This usually happens in cases involving sanctions, theft, money laundering, or law-enforcement action. For the average user, however, the risk of an abrupt freeze of a legally used wallet remains relatively low.

Sources

1. Current exchange rates: Narodowy Bank Polski (average exchange rates table)