USDT and USDC are the two largest stablecoins pegged to the US dollar. Both are worth about one dollar and are available on popular networks, but they work differently. Here is how they differ and what to consider when choosing between them. This article is for information only and is not investment advice.

What a stablecoin is

A stablecoin is a token whose value is pegged to a traditional asset, most often the US dollar. The issuer mints tokens and holds reserves — cash and short-term government bonds — so that each token can be redeemed for roughly one dollar. That makes stablecoins convenient for payments and transfers: unlike Bitcoin or Ethereum, their price barely moves.

USDT (Tether)

Issuer: Tether; the token has been issued since 2014.
The largest stablecoin by market capitalisation and trading volume, especially popular on exchanges and for payments outside the United States.
Networks: TRON (TRC-20), Ethereum (ERC-20), TON and several others.
Reporting: Tether regularly publishes reports on the composition of its reserves prepared by an independent accounting firm.

USDC (USD Coin)

Issuer: the US company Circle; the token has been issued since 2018.
The second-largest stablecoin, widely used in DeFi and by regulated platforms.
Networks: Ethereum (ERC-20), Solana, Base and others. Circle has discontinued support for USDC on TRON, so USDC is usually sent via Ethereum and other networks.
Reporting: Circle publishes monthly reports from an independent auditor on its reserves.
Regulation: in the European Union, USDC is issued in compliance with the MiCA regulation.

The key differences

Adoption. USDT is more common on exchanges and in international payments, USDC in DeFi and on regulated platforms.
Networks and fees. The most popular networks for USDT are TRON and Ethereum, plus TON with its low fees. USDC is most often transferred on Ethereum, where fees are higher and depend on network load.
Regulation. USDC is geared towards the requirements of US and EU regulators. Some regulated European platforms have restricted USDT operations for users in the European Economic Area.
Transparency. Both issuers publish reserve reports; Circle does so monthly.

What the risks are

A stablecoin is not a bank deposit: its value rests on reserves and trust in the issuer. There have been brief deviations from one dollar in the past. For example, in March 2023 USDC briefly fell below $0.90 because of problems at a bank that held part of its reserves, but then regained its peg.

In addition, both issuers can technically freeze tokens at individual addresses — usually at the request of law enforcement. That is another reason not to accept stablecoins from dubious counterparties.

Which one to choose

If low fees and broad exchange support matter most, people usually choose USDT on TRON or TON.
If you work with regulated platforms or DeFi in the Ethereum ecosystem, USDC may be more convenient.
For exchanging into cash, both work the same way: you send the tokens under an order and receive cash at the locked rate.

USDT and USDC at Brothers Exchange

At Brothers Exchange you can exchange for cash or buy with cash USDT on TRC-20, ERC-20 and TON, as well as USDC on ERC-20. We covered the differences between USDT networks in detail in the article “USDT on TRC-20, ERC-20 and TON”. Choose a direction in the exchange form — the rate and the amount you will receive are visible before you create an order.

USDT vs USDC: How the Two Leading Stablecoins Differ