What Are Major Differences Between USDT And USDC?


USDT and USDC are both stablecoins designed to maintain a stable value relative to a particular asset or basket of assets. The value of USDT and USDC are pegged to the US dollar at a 1:1 ratio.

USDT [Tether] is the first and most prevalent stablecoin. It was launched in 2014 by Tether Limited, and it is built on the Bitcoin blockchain using the Omni Layer protocol. USDT claims to maintain its value by holding an equivalent amount of US dollars in reserve, meaning that each USDT token should be backed by a corresponding US dollar in a bank account. However, there have been concerns raised over the years about the transparency and validity of Tether’s claims. techonefive.com easybuzz.info worldnewsday.info dress-market.com travelsguide.org

USDC [Coin], on the other hand, is a stablecoin launched in 2018 by Circle and Coinbase. This ERC-20 token coin is built on the Ethereum blockchain, and like USDT, it is also backed by US dollars held in reserve. USDC is audited regularly by third-party firms to ensure that it maintains a 1:1 ratio with the US dollar.

Due to exchange rate stability several investors prefer to swap USDT to USDC on ZenGo. The platform offers features such as real-time transaction monitoring, seamless trading integrations, and support for multiple cryptocurrencies.

What are the major differences between USDT and USDC?

  1. Issuer: USDT (Tether) is issued by Tether Limited, while USDC (USD Coin) is issued by Circle and Coinbase jointly.
  2. Blockchain: USDT was originally issued on the Bitcoin blockchain, but it is now issued on several blockchains including Ethereum, Tron, and Algorand. USDC, on the other hand, is primarily issued on the Ethereum blockchain, with plans to expand to other blockchains in the future.
  3. Market capitalization: USDT has a larger market capitalization than USDC. As of March 2023, USDT has a market capitalization of over $75 billion, while USDC has a market capitalization of over $30 billion.
  4. Transparency: Tether has been criticized for lack of transparency regarding the actual reserve of USD backing the USDT in circulation. In contrast, USDC provides regular attestation reports from independent accounting firms that verify the full reserve of USDC tokens in circulation.
  5. Adoption: USDT is more widely adopted than USDC, with more exchanges and wallets supporting USDT than USDC.
  6. Availability: USDT is available on more exchanges and trading pairs than USDC.
  7. Fees: USDT has lower transaction fees than USDC on some platforms, but this may vary depending on the platform.
  8. Speed: USDT transactions are generally faster than USDC transactions due to USDT’s use of the Omni Layer protocol.
  9. Regulatory environment: Both USDT and USDC are regulated by the same regulatory bodies as other stablecoins, including the US Securities and Exchange Commission (SEC) and the New York State Department of Financial Services (NYDFS). However, Tether has faced scrutiny and legal challenges regarding its reserve management practices, while USDC has positioned itself as a more transparent and compliant alternative.

Both USDT and USDC are widely used in the cryptocurrency ecosystem, with USDT being the more widely used of the two. They are popular for their ability to provide a stable store of value and facilitate trading between cryptocurrencies and traditional fiat currencies without the volatility often associated with other cryptocurrencies.

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