USDC vs. Tether: The Battle for Stablecoin Dominance
USDC and Tether (USDT) are the leading players in the stablecoin market. While Tether holds a larger market share, it has faced ongoing scrutiny over its reserve transparency. In contrast, USDC has built a reputation for trustworthiness through regular audits and strict regulatory compliance.
In August 2024, Visa reported that USDC's transaction volume surpassed Tether's, highlighting its growing role in the payment sector. Managed by Circle, USDC’s reserves are held in banks regulated by U.S. authorities, reinforcing its credibility. Tether, meanwhile, operates with less transparency, raising concerns among investors.
This rivalry has accelerated efforts to standardize the stablecoin market, with USDC increasingly emerging as the preferred choice for institutions