The difference between USDT (Tether) and USDC (USD Coin): Transparency, Regulation, and Market Use"
The difference between USDT (Tether) and USDC (USD Coin) lies in several key aspects, although they are both digital currencies linked to the US Dollar (USD):
1. Issuance and Joint Authority:
- USDT (Tether): Issued by iFinex, one of the first stablecoins in the market. It is considered the most used and widespread among stablecoins.
- USDC (USD Coin): Issued by Circle and Coinbase as part of a stablecoin that relies on transparency and regulatory standards.
2. Transparency and Auditing:
- USDT: Has a history of doubts regarding the sufficiency of reserves to back each USDT unit, although the company issues financial reports, which are often not independent.
- USDC: Focuses on transparency and is subject to periodic independent audits to ensure full dollar reserves support the coins.
3. Market Use and Adoption:
- USDT: More widespread and traded in the market, widely used in trading and financial operations.
- USDC: Enjoys greater trust among institutions and is increasingly used, especially in environments that require transparency and regulation.