USDC vs USDT: What is the difference and what to choose?
USDC (USD Coin) and USDT (Tether) are two of the largest stablecoins pegged to the US dollar. Both are widely used in trading, DeFi, and transfers, but differ in transparency, regulation, and the reputation of their issuers.
🔍 Transparency and backing
• USDC is issued by Circle, which publishes asset reports involving regulated auditing firms in the USA. Support from Coinbase and a commitment to compliance make USDC more transparent.
• USDT is issued by Tether, which has long been criticized for the opacity of its reserves. Although the company now publishes reports, trust from institutional investors is still lower than that of USDC.
⚙️ Usage and liquidity
• USDT remains the most popular stablecoin by trading volume. It dominates most cryptocurrency exchanges, including Binance.
• USDC is more commonly used in DeFi, institutional settlements, and regulated ecosystems.
⚖️ Which is better?
• USDT is better for active trading due to its high liquidity.
• USDC is preferable for long-term storage, institutional use, and for those who value transparency and regulation.
