Comparison between Stablecoins USDC and USDT
✅ Comparison between popular stablecoins
1- Creator:
💕 USDC: Centre Consortium (backed by Circle)
♥️ USDT: Tether Limited
2- Year Established:
- USDC: 2018
- USDT: 2014
3- Price Peg:
- USDC is pegged at a 1:1 ratio to the US Dollar
- USDT is pegged at a 1:1 ratio to the US Dollar
4- Market Capitalization (May 2022):
- For USDC valued at 49.4 billion dollars
- For USDT valued at 79.4 billion dollars
5- Backing:
- USDC: Cash and equivalents at 100%
- USDT: Backed by liquid debt assets, Treasury bills, and some cash
6- Audit Frequency:
- USDC: Monthly
- USDT: Irregular
7- Price Risk / Risk of Losing 1:1 Peg:
- USDC: Zero due to its 100% redeemable nature supported by always liquid backing.
- USDT: There are price risks, but it remains very close to 1 US Dollar due to its redeemability (albeit limited to liquid assets in the short term).
8- Accounting:
- USDC: A reliable asset due to zero price risks, regulatory status, and transparent audit reporting.
- USDT: Unreliable due to price risks, unclear backing, and unclear regulatory status.
