The cryptocurrency market is evolving rapidly, and stablecoins like USDT and USDC have become an essential part of it. These digital assets are backed by the US dollar and help investors protect their funds from volatility. However, there are key differences between them that can influence your choice. What is the difference between USDT and USDC? What is the difference between USDT and USDC? How does USDT differ from USDC? Let’s find out.
USDT and USDC: Similarities and Differences
Before discussing their differences, it is important to understand what these two stablecoins have in common. Both tokens:
Are pegged to the US dollar at a 1:1 ratio.
Are used for trading, storing funds, and international transactions.
Are available on most cryptocurrency exchanges.
But if their fundamental working principles are the same, what is the difference between USDT and USDC, and why do investors sometimes prefer one over the other?
1. Reserves and Transparency
A fundamental question for any stablecoin is its backing.
USDT (Tether) claims that its tokens are backed by various assets, including cash, commercial paper, government bonds, and other financial instruments. However, in the past, Tether has faced criticism for a lack of transparency.
USDC (USD Coin) is fully backed by liquid reserves in US dollars held in bank accounts. Regular audits ensure its compliance with regulatory standards.
If maximum transparency is important to you, USDC appears to be a more reliable option.
2. Regulation and Trust
How does USDT differ from USDC in terms of regulation?
USDT has faced legal issues and regulatory investigations for a long time. Although it remains the most popular stablecoin, some companies and platforms restrict its usage.
USDC, on the other hand, was created in partnership with regulated financial institutions and is fully compliant with US laws.
If you work with institutional investors or regulated financial platforms, USDC would be a more preferable choice.
3. Liquidity and Market Demand
Another crucial aspect is the token’s liquidity and popularity among traders.
USDT is the most widely used stablecoin and has high liquidity, especially in Asian markets. It is easy to use for trading and arbitrage.
USDC is gradually gaining popularity, especially in the DeFi (decentralized finance) space.
If you need maximum liquidity and exchange availability, USDT is the obvious choice.
4. Real-World Use Cases
How does USDT differ from USDC in everyday use?
USDT is primarily used for fast transactions, trading, and exchange settlements.
USDC is more suitable for storing funds, participating in DeFi projects, and working with regulated financial platforms.
Your choice depends on your goals:
If speed and availability matter most – choose USDT.
If reliability and transparency are a priority – go with USDC.
Which Stablecoin Should You Choose?
What is the difference between USDT and USDC in the end?
If you need maximum liquidity and convenience, USDT is the best choice.
If you prefer a more transparent and regulated asset, USDC is the way to go.
In any case, it is important to consider the risks and use trusted platforms for working with cryptocurrencies.
Where to Exchange USDT and USDC?
On the BTCChange24 cryptocurrency exchange, you can exchange USDT TRC20 for Tinkoff or Sberbank, as well as USDC.
Or, if you don’t have stablecoins yet, you can buy them. We’ve covered this in our blog articles "How to Buy USDC in 2025" and "Introduction to Tether for Beginners."
Additionally, you can select a specific exchange pair (including a specific network) on the service’s main page.
