USDT and USDC are stablecoins pegged one-to-one to the U.S. dollar, each backed by reserves covering every token in circulation. Tether's USDT is the largest stablecoin, with the deepest liquidity across global exchanges. Circle's USDC is the second-largest, with Circle staking its reputation on being a publicly traded company, with frequent audits, U.S. and E.U. licenses, and institutional partnerships.
In this article, we’ll cover the history, use cases, and growth of these two leading stablecoins.
USDT vs USDC: A Side by Side
Both USDT and USDC are centralized stablecoins, meaning they are issued and managed by a central company. The firms behind USDT and USDC are Tether and Circle, respectively. Both coins are backed by asset reserves and are redeemable for one dollar per token. For most purposes, both are identical substitutes that can be swapped for the other at negligible cost.
However, the two assets diverge when it comes to their reserve policies and regulatory standing.
