$USDC

USDC is issued by Circle, a U.S.-based and regulated financial technology firm, while USDT is issued by Tether Ltd, a company based in Hong Kong. USDC is considered more transparent, as it provides regular monthly audits and adheres more closely to U.S. regulatory standards. In contrast, USDT has faced criticism in the past for a lack of transparency but has since improved its reporting and auditing practices.

When it comes to reserves, USDC is fully backed by cash and short-term U.S. Treasury securities, offering a conservative and secure structure. USDT also claims to be fully backed, but it has used a mix of assets including commercial paper, which led to regulatory scrutiny. Today, Tether also holds a large amount of U.S. Treasuries, but some concerns still linger among conservative investors.

In terms of adoption and liquidity, USDT leads the market with the largest stablecoin market cap and the highest daily trading volume. It is especially popular on centralized exchanges and is widely used in global markets, particularly in Asia. USDC, while smaller in market cap, is widely used in the DeFi ecosystem and on U.S.-regulated platforms, making it more suitable for compliant and transparent operations.

Both coins operate across multiple blockchains, but USDT dominates on Tron, which is favored for low transaction fees, while USDC is widely used on Ethereum, Polygon, and Solana.

From a regulatory and risk standpoint, USDC is generally considered safer due to its stronger compliance with U.S. financial laws. It can freeze tokens when required by law enforcement, just like USDT, but Circle is more transparent about it. USDT, though more widely used, carries higher perceived regulatory and reputational risks.