Tether froze roughly 30 times more value than Circle in 2025, as the use of stablecoin blacklists increased sharply across the crypto sector, according to blockchain data cited in recent industry analysis.
The figures highlight a widening gap in enforcement activity between the two largest stablecoin issuers by usage. Tether’s USDT accounted for the vast majority of frozen funds, reflecting both its larger transaction footprint and its more frequent use in jurisdictions and networks linked to illicit activity, analysts said.
Blacklisting allows issuers to freeze specific wallet addresses, preventing funds from being moved. The practice has expanded rapidly in 2025 as regulators, law enforcement agencies and compliance partners have increased pressure on stablecoin providers to intervene in cases involving fraud, sanctions breaches and money laundering.
While USDC issuer Circle also froze addresses during the year, the total value was significantly lower than that frozen by Tether. Industry observers said this partly reflects USDC’s heavier concentration in regulated markets and institutional use cases.
Tether has previously said it cooperates with global authorities and freezes assets when legally required. The company has argued that its scale and global reach naturally result in a higher number of enforcement actions compared with competitors.
The surge in blacklisting activity underscores how stablecoins are increasingly operating within traditional compliance frameworks, despite their use in decentralised ecosystems. Analysts say enforcement actions are likely to continue rising in 2026 as stablecoins become more embedded in global payments and financial infrastructure.
