USDT vs USDC: what is the difference between these stablecoins?
When trading cryptocurrencies or using them to store value, you will often encounter
stablecoins. The two biggest names are USDT (Tether) and USDC (USD Coin). Both are designed to track the value of the US dollar, but there are key differences in how they achieve this and what it means for their usage, transparency, and risks.
In short
USDT (Tether) and USDC (USD Coin) are stablecoins pegged to the US dollar. USDT has the largest trading volume but offers less transparency regarding reserves. USDC is more regulated and transparent but has slightly less market share. Both stablecoins maintain a 1:1 dollar peg, but trust and regulatory oversight differ. The choice between USDT and USDC depends on your priority: liquidity or regulation.
What are stablecoins?
Stablecoins are digital currencies that track the value of a stable asset, usually the US dollar. They combine the speed and accessibility of cryptocurrencies with the stability of fiat money. Stablecoins are widely used for trading, saving, or temporarily parking profits without converting funds back into euros or dollars.
There are three main types of stablecoins:
Fiat-backed: backed by traditional currency, such as USDT and USDC. Crypto-backed: backed by other cryptocurrencies. Algorithmic: regulated through algorithms instead of reserves (less common since 2022). What is USDT (Tether)?
History of USDT
USDT, better known as Tether, was launched in 2014 and is the first and largest stablecoin on the market. It is issued by Tether Limited, a company registered in the British Virgin Islands. Over the years, Tether has grown into the most widely used stablecoin on crypto exchanges worldwide.
How does USDT work?
Each USDT is theoretically backed by one US dollar in reserves. These reserves, however, consist of a mix of assets such as cash, short-term bonds, and other financial instruments. As a result, the value of USDT usually remains close to one dollar, although the price may fluctuate slightly in the short term.
Advantages and disadvantages of USDT
Some advantages of USDT include:
The highest trading volume of all stablecoins. Widely accepted on virtually all exchanges. High liquidity enables fast transactions. Some disadvantages of USDT include:
Less transparency about the exact reserves. Less strict oversight from US authorities.
No longer permitted in the EU due to MiCA regulations.Temporary deviations from the dollar peg during past market turbulence. Where can I buy USDT?
It has become difficult to buy USDT on a European exchange. This is because the issuer, Tether, does not want to comply with the MiCA regulations in Europe. As a result, most exchanges have delisted the crypto asset. It is also no longer possible to buy USDT at Coinmerce.
What is USDC (USD Coin)?
History of USDC
USDC was launched in 2018 by Circle in collaboration with Coinbase under the Centre consortium. The stablecoin was designed to prioritise full transparency and regulatory compliance, particularly within the United States.
How does USDC work?
Each USDC token is backed by one US dollar or an equivalent instrument such as US Treasury bonds. Circle publishes independent monthly accounting reports to verify that sufficient reserves exist for every issued token.
Advantages and disadvantages of USDC
Some advantages of USDC include:
Full transparency of reserves through monthly audits. Stronger regulation and oversight in the US. Often viewed as a reliable alternative to USDT. Some disadvantages of USDC include:
Less widely accepted than USDT on some exchanges. Relies on US regulatory frameworks. Slightly lower trading volume than USDT. Where can I buy USDC?
USDC is available at Coinmerce.
Buy USDC easily with euros and use it for trading, saving, or transferring to other wallets.
Similarities between USDT and USDC
Both stablecoins track the value of the US dollar (1:1). They are primarily used for trading, DeFi (Decentralised Finance), and payments. Both USDT and USDC operate on multiple blockchains, including Ethereum, Tron, and Solana. Both are fiat-backed stablecoins supported by traditional financial assets.
Differences between USDT and USDC
Reserves and transparency
USDC publishes monthly audit reports from independent parties. USDT does not do this with the same frequency and provides fewer details about the composition of its reserves.
Regulation & oversight
USDC falls under the supervision of US financial institutions and must comply with money transmission laws. USDT operates under less stringent oversight.
Liquidity & trading volume
USDT dominates the market with billions in daily trading volume, making it the most liquid stablecoin. USDC, however, is often used in regulated environments such as DeFi protocols.
Risk of de-pegging
Both stablecoins rarely lose their dollar peg, but USDT has experienced brief deviations in the past due to uncertainty surrounding its reserves.
Usage & adoption
USDT is popular among traders due to its speed and availability, while USDC is more often used by companies and institutions that value transparency.
Comparison table: USDT vs USDC (2025)
| Feature | USDT (Tether) | USDC (USD Coin) |
| Issuer | Tether Limited | Circle & Coinbase (Centre Consortium) |
| Year launched | 2014 | 2018 |
| Backing | Fiat and other assets | 100% fiat and US Treasury bonds |
| Transparency | Limited, periodic reports | Monthly audits by independent parties |
| Regulation | Not permitted in the EU, less strict in the US | Permitted in the EU, strongly regulated in the US |
| Trading volume | Very high | High, but lower than USDT |
| Use cases | Trading, transfers, arbitrage | DeFi, trading, institutional use |
| Blockchain networks | Ethereum, Tron, Solana and more | Ethereum, Solana, Algorand, Avalanche |
| De-pegging risk | Slightly elevated | Low |
Which stablecoin should I choose?
If you trade frequently, USDT is often the most practical choice. Its high liquidity enables fast buying and selling without major price discrepancies. If you prioritise certainty and transparency, USDC is more appealing. The monthly audits and clear regulatory framework make it suitable for those who value long-term stability. In short, USDT represents efficiency and liquidity, while USDC stands for transparency and regulation. You can buy USDC easily at Coinmerce.
Frequently asked questions
Are USDT and USDC always worth $1?
In principle, yes. Both stablecoins are pegged to the US dollar but may fluctuate slightly (for example, $0.99–$1.01) depending on supply and demand.
Is USDC safe?
USDC is issued by regulated entities with monthly audits, making it one of the most transparent stablecoins.
Is USDT safe?
USDT has been active for many years and has high usage volume, but the transparency surrounding its reserves is less complete than that of USDC.
How much is 1 USDC worth?
1 USDC typically represents 1 US dollar, depending on the current exchange rate against the euro.
How do I convert USDT or USDC to euros?
You can easily convert stablecoins to euros via Coinmerce. Select the stablecoin you wish to sell and you will receive euros directly in your balance.