Circle mints 250 mln USDC on Solana: But can it beat Tether?

Key Takeaways

Why is USDC growing so rapidly on Solana?

Increased activity on DeFi platforms like Wormhole and LayerZero, along with Solana’s fast, low-cost network, is driving high-velocity stablecoin operations.

Has Circle been issuing USDC on Solana before?

Yes, Circle has consistently minted $250 million in USDC on Solana in April, May, June, and August 2025, following a recurring liquidity strategy.

Circle, the issuer of USD Coin [USDC], has minted 250 million new stablecoins on the Solana [SOL] blockchain, signaling a major boost for the fast-growing DeFi ecosystem.

Reported on the 19th of September by Whale Alert, the issuance highlights rising demand for USDC liquidity across both institutional and decentralized finance applications.

With this expansion, Circle aims to strengthen trading activity and support the growth of the blockchain’s native applications.

This follows a rapid surge in USDC’s total supply on Solana, which has jumped from $2.5 billion to $10 billion in just a few weeks.

What made Circle choose Solana?

The choice for Solana reflects growing activity on decentralized finance (DeFi) platforms such as Wormhole [W] and LayerZero [ZRO], which facilitate seamless token exchanges and cross-chain transfers.

In fact, institutional investors and DeFi protocols are also increasingly leveraging Solana’s scalable network, low fees, and fast transaction speeds to handle high-velocity stablecoin operations.

This mint is consistent with Circle’s pattern of large-scale token issuance throughout 2025, with similar $250 million mints occurring in April, May, June, and August.

That being said, the recent mint comes amid broader competition in the stablecoin sector.

Is Tether’s expansion pushing Circle?

Tether, USDC’s primary rival, has launched USA₮, a U.S.-based dollar-backed token designed to meet regulatory requirements under the GENIUS Act, signed into law in July.

In fact, the passage of the GENIUS Act has been a game-changer for the stablecoin space, especially USDT.

Data from VisionChain Analytics indicates that Tether [USDT] recorded $436.4 billion in transaction volume from the 1st to the 23rd of September, while USDC processed $285.5 billion.

Source: VisaOnchainAnalytics

Is USDC losing ground?

Finally, despite Circle’s expanding USDC supply, the company’s stock price traded at $137.64, down 4.15% as of the same reporting period, reflecting cautious investor sentiment.

This coincided with the race for USDH on Hyperliquid finally getting concluded, with Native Markets securing the rights to issue the network’s new U.S. dollar stablecoin.

With USDH’s launch, Circle’s USDC faces fresh competition on the platform, signaling intensified rivalry in the stablecoin market. 

Thus, it’s better to hold your horses to see how things unfold.