Revolut to Drop USDT After MiCA; USDC Volume Surges

Revolut, Europe’s largest fintech platform, will stop accepting Tether’s USDT deposits at the end of July 2026 and remove USDT trading from its app on Aug. 31, 2026. Customers who do not move funds by the August deadline will have remaining USDT balances automatically converted to fiat, the company notified users. Revolut has not specified how those conversions will be executed or whether fees will apply.

Analysts cited regulatory and risk considerations tied to the European Union’s Markets in Crypto-Assets (MiCA) rules as a factor in Revolut’s decision. Analyst Max Karpis attributed the delisting to obligations and compliance risks created by the new EU framework. Revolut had earlier introduced zero-fee transfers and 1:1 swaps between USDT and USDC before announcing the reversal.

MiCA is now in force across the EU and sets rules for stablecoins that include reserve and custody requirements for issuers and firms offering crypto services. Circle, the issuer of USDC, received MiCA authorization. Tether has indicated it does not plan to seek MiCA approval.

Tether’s chief technology officer, Paolo Ardoino, criticized MiCA, calling it “very dangerous for stablecoins.” He said Tether would not pursue MiCA authorization and warned that the regulation’s reserve requirements-he described them as a need to hold a large share of reserves as cash deposits in European banks-could stress banks during large redemptions. Ardoino also said Tether intends to keep USDT available for emerging markets that rely on it.

Payments data show shifts in stablecoin use in recent months. Visa reported USDC transfer volume of $1.21 trillion in June 2026, roughly double Tether’s USDT for the month and the second-highest monthly total on record for USDC. Early July figures indicated USDC transfer volumes about three times larger than USDT. Research firm data also recorded significant growth in euro-denominated stablecoin activity while USD-denominated stablecoin volumes declined.

Tether remains the largest stablecoin by supply, but trading and transfer volumes have narrowed the gap with USDC. Market participants and platforms across Europe have reviewed acceptance of USDT as MiCA came into effect. It is unclear how extensively USDT usage in the region will fall or whether MiCA-authorized coins such as USDC will replace USDT on European platforms.