What are the main differences between USDT and USDC?

So, what differentiates USDC from USDT?

Although these stablecoins share many similarities, such as their names, they also have significant differences that are key to the cryptocurrency market.

First, the issue of transparency and credibility.

USDT is produced and fully controlled by Theter Limited, meaning there is no third party or centralized authority influencing its management. Instead, since its inception, USDC has been subject to continuous regulation and oversight by US authorities and banks. This oversight has reinforced the trust and demand for USDC among traditional investors and institutions.

Second, in terms of maintaining price stability, the differences are notable despite the fact that both are stablecoins. USDT uses a reserve system, in which each token is backed by financial reserves in US dollars or other assets controlled by the company. On the other hand, USDC uses a "capital control" system, in which each token is backed by US dollar assets deposited in bank accounts. This makes the USDC system more transparent and allows for more accurate reporting, which is why we often see asset reporting or proofs of USDC.

Finally, these stablecoins are issued on different blockchains. USDC is an ERC-20 token issued on the Ethereum blockchain, while USDT is issued on multiple blockchains, such as Ethereum (ERC-20) and Tron.

In general, when it comes to credibility and transparency, USDC is considered more secure and reliable than USDT. USDC's collateral is constantly published, and the companies behind it, Circle and Coinbase, have great reputations in the cryptocurrency sector. It's worth noting that USDT has faced several accusations related to its lack of transparency and stability.