Table of Contents
USDT is the most popular and liquid stablecoin in the world, used by traders for trading, fast transfers, and holding digital dollars. USDC is a more transparent and regulated stablecoin, often chosen for payments, corporate settlements, and DeFi. In the USDT vs USDC comparison, there is no universal winner: the best stablecoin depends on your goal - trading, transfers, or secure storage.
Key Takeaways
- USDT and USDC are stablecoins pegged to fiat currency and designed to keep a fixed 1:1 value. They aim to stay equal to 1 US dollar.
- USDT has the largest market cap and liquidity among stablecoins, so it is used more often by traders and for global settlements.
- USDC is issued by Circle, its reserves are managed by BlackRock, and thanks to regular attestations it is considered more transparent and more regulated.
What Is a Stablecoin?
A stablecoin is a cryptocurrency whose value is tied to a stable underlying asset - most often the US dollar, but sometimes gold or other financial instruments. In simple terms, the stable coin meaning is a digital version of a real asset, pegged to fiat currency so it can stay close to $1 and be used for on-chain payments, fast transfers, and storing value without volatility.
There is a wide stablecoin list on the market, but the most common stablecoin examples are USDT, USDC, DAI, and USDe. The total market cap of USD-stablecoins is over $300 billion, and the leaders in liquidity and daily usage remain Tether (USDT) and USD Coin (USDC).
What Is USDT (Tether)?
USDT is the largest and most widely used USDT stablecoin, and also the first stablecoin in history, issued by Tether since 2014. It has become the main settlement standard for the crypto market. Each token is pegged 1:1 to fiat currency, creating a convenient digital alternative to the US dollar.
According to CoinGecko, the Tether market cap is over $184 billion, and its daily trading volumes remain among the highest in the industry. Because of this, USDT is considered the most liquid stablecoin and the main “operational dollar” of the crypto economy.
USDT market cap chart. Source: coingecko.com
What Is USDC (USD Coin)?
USD Coin (USDC) is a fiat-backed USDC stablecoin pegged 1:1 to the US dollar and issued as a fully regulated digital dollar. The token was created by Circle in partnership with Coinbase in 2018 and was originally managed through the Centre consortium until 2023, when Circle took full control of issuing and managing USDC. Unlike many other stablecoins, USDC focuses on reserve transparency and regulatory compliance.
According to CoinMarketCap, the Circle USDC market cap is over $75 billion, making it one of the largest stablecoins on the market.
The Circle USDC market cap exceeds $75 billion, making it one of the largest stablecoins on the market. Source: coinmarketcap.com
USDT vs USDC: Comparing Key Features
Although both USDT and USDC serve the same purpose - providing a stable digital dollar - there are important differences between them, and we will look at them below.
Adoption and Global Usage
USDT: USDT appeared earlier than USDC, and thanks to its early start and high liquidity it became the largest stablecoin on the market. During this time, Tether has built a huge user base - according to official data, the number of USDT users has passed 500 million worldwide.
USDC: USDC, although launched later, is steadily increasing its market share and also makes the digital dollar accessible to millions of wallets around the world. According to Circle, as of September 2025, USDC is available in more than 185 countries.
Reserves and Transparency
USDC: USDC is fully backed by reserves made mostly of cash and short-term U.S. Treasury bills, which makes its backing model simple and predictable. The reserves are managed by BlackRock, undergo regular attestations, and Circle publishes detailed reports, providing a high level of transparency for users.
USDT: USDT also claims full backing, but its reserve structure is more mixed: it includes U.S. Treasury bills, cash, secured loans, funds, corporate bonds, some crypto assets (including Bitcoin), and precious metals. Despite regular reports, there has never been a full independent audit, and Tether’s transparency is still a topic of discussion and regulatory attention in both Europe and the U.S.
The chart shows the structure of USDC reserves and confirms its high transparency and full backing with liquid assets. Source: macromicro.me
Regulation and Compliance
USDC USDC follows strict U.S. regulatory standards: Circle operates under U.S. financial rules, publishes reports, and works with regulators.
USDT: USDT has fewer regulatory requirements, which makes it easier to use worldwide and makes the token more flexible in terms of global availability.
Price Stability and the $1 Peg
USDC vs USDT usually stay close to $1, but in certain situations they can temporarily move away from the peg. USDC dropped to $0.43 during the Silicon Valley Bank collapse, where Circle held more than $3 billion of its reserves. In this case, the price quickly returned to $1 within a few days.
Supported Blockchains
Neither USDT nor USDC runs on its own network - both are issued as tokens on different L1 and L2 blockchains.
USDT: USDT is available on more than ten blockchains, including TRON (TRC20), Ethereum (ERC20), Solana (SPL), and BNB Chain (BEP20). The largest trading volumes are on TRON and Ethereum, which makes these networks the main options for storing and transferring USDT.
USDC: USDC is expanding quickly and is now natively available on 29 blockchains - Ethereum, Solana, Avalanche, Arbitrum, Polkadot, Hyperliquid, Abstract, and other major ecosystems.
USDT distribution across major blockchains, showing how Tether supply is allocated between Ethereum, Tron, BNB Chain, Solana, and other networks. Source: DeFiLlama
Payments and Real-World Usage
When comparing USDT vs USDC, both stablecoins are widely used for transfers, payments, and storing value, but their popularity depends on the region and the user’s needs.
USDT: USDT is especially popular in countries with limited access to the US dollar - mainly in Asia, Latin America, and Africa. It is used for P2P payments, international transfers, and trading. The stablecoin is available on most CEX and DEX platforms (Uniswap, PancakeSwap, and others) and remains the most traded stablecoin in the world: in October 2025 its average daily trading volume was about $130 billion.
USDC: USDC is more deeply integrated into the fintech infrastructure of the U.S. and Europe thanks to Circle’s partnerships with Visa, Stripe, and major payment platforms. It is accepted by Microsoft, Twitch, and other services. It is widely listed on exchanges, and in DeFi it is actively used by institutional traders - for example, on Hyperliquid, where USDC serves as the main margin asset.
Based on the key differences between USDT and USDC, we created a detailed comparison table.
USDT vs USDC: Comparison Table
| Criterion | USDT (Tether) | USDC (USD Coin) |
|---|---|---|
| Launch year | 2014 | 2018 |
| Issuer | Tether Limited | Circle |
| Peg stability ($1) | 1:1 | 1:1 |
| Reserve composition | US Treasuries, cash, repo, secured loans, funds, BTC, precious metals | Cash and short-term US Treasuries (managed via BlackRock) |
| Transparency & audits | Publishes reports, but has never undergone a full independent audit | Monthly reserve attestations + annual third-party financial audits |
| Market capitalization | ~$184B | ~$75B |
| User base | 500M+ users globally | Millions of wallets in 185+ countries (Circle data) |
| Primary use cases | Trading, P2P transfers, remittances, everyday retail crypto usage | Payments, fintech integrations, corporate settlements, e-commerce |
| Exchange adoption | #1 trading pair on major CEX/DEX platforms | Widely listed; strong presence in institutional and fintech infrastructure |
| DeFi usage | Common in DeFi, varies by chain | Used as a base asset in several protocols (e.g., Hyperliquid) |
| Supported blockchains | 10+ networks (Ethereum, Tron, Solana, BNB Chain, etc.) | 29 native networks (Ethereum, Solana, Avalanche, Arbitrum, Polkadot, Hyperliquid, Abstract, etc.) |
USDT or USDC - Which Stablecoin Is the Best?
If we answer directly, the question of which stablecoin is better depends on what matters to you.
If you prefer the most widely used and most liquid stablecoin, then USDT is the logical choice - this is its main advantage in the usdt vs usdc comparison.
If transparency, regular reporting, and a more regulated model are more important to you, then USDC becomes the natural option.
The key point: the best stablecoin is not “one perfect choice”, but the one that matches your specific goal - trading, transfers, storage, or using DeFi - and is easy to manage in your wallet.
Gem Wallet - the Best Wallet for USDT, USDC, and 20+ Other Stablecoins
If you want to use both USDT and USDC for all your needs, you need a secure multichain wallet without restrictions. Gem Wallet is exactly that - the best stablecoin wallet with a self-custody architecture, open-source code, and support for 100+ networks. Wallet supports USDT, USDC, and more than 20 other stablecoins (including DAI, RLUSD, USDY, USAT) across all major standards: ERC20, TRC20, SPL, BEP20, and others. With Gem Wallet you can:
securely store USDT and USDC in any network - the keys are yours only, and no one else gets access to your assets;
send and receive USDT and USDC without limits - the wallet charges no extra fees, only the standard network fee;
swap USDT and USDC, for example USDT on Arbitrum to USDT on Solana; or instantly swap USDC for BTC, ETH, BNB, and other assets at the best rates through the built-in DEX aggregator directly inside the wallet.
purchase USDT, USDC, and any other asset across 10M+ supported tokens with a credit card quickly and easily.
