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USDC and USDT are two of the most popular stablecoins pegged to the U.S. dollar. Both aim to bring stability to digital transactions, but they differ in how they’re backed, who issues them, and how they’re used.
Stablecoins like USDC and USDT give individuals and businesses the ability to transact globally, 24/7, without worrying about crypto market volatility. They’re especially useful for companies moving funds across borders or holding digital dollars without converting back to a bank account.
What is USDC?
USD Coin (USDC) launched in 2018 through a partnership between Circle and Coinbase under the Centre Consortium. It’s one of the most transparent and regulated stablecoins in circulation.
Each USDC is backed 1:1 by U.S. dollars or short-term Treasuries held in regulated financial institutions. Circle issues monthly attestation reports, verified by accounting firm Grant Thornton, to confirm the reserves match the number of USDC in circulation.
Because of its regulatory clarity and transparency, USDC has gained adoption among fintechs, payment platforms, and enterprise users that prioritize compliance and trust. In short: it’s the “clean” stablecoin of choice for most institutional players.
What is USDT?
Tether (USDT) launched in 2014 and remains the largest stablecoin by market cap. It’s issued by Tether Limited, a company registered in the British Virgin Islands.
Like USDC, Tether aims to maintain a 1:1 peg to the U.S. dollar. But unlike USDC, its reserves include a mix of assets—cash equivalents, U.S. Treasuries, and secured loans. While Tether publishes quarterly assurance reports, its reserve composition has drawn scrutiny from regulators and analysts over the years.
Despite the criticism, Tether’s liquidity is unmatched. It’s widely used on exchanges, especially in regions with limited access to U.S. banking, and remains a staple for traders who need deep, global liquidity.
Comparing USDC and USDT
| Feature | USDC | USDT |
|---|---|---|
Issuer | Circle / Coinbase (U.S.) | Tether Limited (B.V.I.) |
Launch Year | 2018 | 2014 |
Backing | 100% cash and Treasuries | mix of cash, Treasuries, and loans |
Transparency | Monthly attestations | Quarterly assurance reports |
Regulation | U.S.-based, compliant | Offshore, less regulated |
Primary Use | Payments, B2B finance | Exchanges, DeFi, trading |
In short: USDC is the regulated option; USDT is the liquid one. Both serve different audiences. USDC’s transparency makes it ideal for corporate finance, treasury operations, and payments infrastructure. USDT’s massive global reach and market liquidity make it indispensable in trading ecosystems.
Transacting with Stablecoins
Using stablecoins like USDC and USDT means transacting directly on blockchain networks such as Ethereum, Solana, or Tron. Settlement happens in minutes, without intermediaries or bank hours.
For businesses, stablecoins offer real advantages:
- Move funds instantly across borders.
- Automate payouts to suppliers or partners.
- Hold value in dollars without relying on a traditional bank.
- Reduce FX costs for global transactions.
Still, companies must manage custody, compliance, and volatility in blockchain fees. Many integrate stablecoins into their existing payment platforms to balance speed with control.
Are USDC and USDT Interoperable?
USDC and USDT are not natively interoperable—they’re separate tokens issued by different entities. You can’t send USDC to a USDT wallet. However, both exist across multiple blockchains, and you can easily convert between them on exchanges, via liquidity pools, or through on-chain bridges.
Cross-chain and interoperability tools are improving, making it easier to move value between USDC and USDT without taking on unnecessary exchange risk.
The Bottom Line
USDC and USDT both track the U.S. dollar, but they reflect different philosophies.
- USDC values compliance, transparency, and regulatory alignment.
- USDT prioritizes liquidity, accessibility, and global reach.
For most companies, the choice depends on what matters more: trust and auditability (USDC) or scale and flexibility (USDT).
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Explore stablecoin content.
The GENIUS Act, signed into law in 2025, is the first federal framework governing how U.S. payment stablecoins are issued, backed, and supervised. For stablecoin issuers, the GENIUS Act creates clear standards for licensing, reserves, consumer protections, and ongoing oversight. These rules reshape how stablecoin issuers operate and bring payment stablecoins closer to traditional money movement systems in terms of safety and reliability.
Stablecoins maintain price stability through two main models: collateralized and algorithmic. These models differ in backing, risk, and complexity—and understanding them is essential for evaluating which stablecoins are appropriate for enterprise use.
Stablecoin reserves are the financial assets that back a stablecoin’s value. They ensure that each token can be redeemed for its underlying asset—typically $1 USD. For businesses evaluating stablecoins, reserves are one of the most important indicators of stability and risk. Reserves vary by issuer but must reliably cover outstanding stablecoin supply.
Blockchain treasury management refers to the systems and processes companies use to hold, move, and reconcile digital assets—such as stablecoins—across blockchain networks. As businesses adopt stablecoins for faster settlement and global operations, treasury teams must manage these assets with the same rigor as traditional money movement.
Stablecoin “mint and burn” refers to how stablecoins enter and exit circulation. These processes maintain price stability and ensure the number of tokens matches the value held in reserve. Understanding minting and burning helps businesses evaluate how stablecoin supply is created, monitored, and controlled.
A Stablecoin API lets companies send, receive, and manage stablecoins through simple API calls rather than operating blockchain infrastructure directly. Instead of handling private keys, running nodes, or writing smart-contract code, businesses can integrate stablecoin payments through a developer-friendly interface. This makes it easier to embed blockchain-based payments into products, platforms, and financial operations.
A stablecoin smart contract is the on-chain program that defines how a stablecoin works. It controls functions like minting, burning, transferring tokens, and applying compliance rules. Stablecoin smart contracts are central to how value moves on blockchain networks. These contracts provide predictable, programmable behavior—similar to how card networks or treasury management systems encode specific transaction rules.
The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—is the United States’ first comprehensive federal law governing payment stablecoins. Signed into law in 2025, the GENIUS Act establishes clear rules for how regulated stablecoins are issued, backed, redeemed, and supervised. Stablecoins are digital tokens designed to maintain a stable value, typically pegged 1:1 to the U.S. dollar. They are increasingly used for global payments, settlement, and treasury operations. Before the GENIUS Act, stablecoin oversight in the U.S. existed across a patchwork of state and federal guidance. GENIUS introduces a unified framework to support responsible innovation, protect consumers, and clarify regulatory boundaries.
Cross-border stablecoin payments let companies move money across countries using digital dollars. Instead of routing through banks and correspondent networks, funds move directly on blockchain rails for instant settlement.
Stablecoin on-ramps and off-ramps connect stablecoins to the financial system by turning fiat money into stablecoins and vice-versa.
A stablecoin is a form of cryptocurrency created to maintain a consistent value by being linked to a reserve asset, such as a fiat currency (e.g., USD, EUR), a commodity (e.g., gold), or other digital currencies.
USDC and USDT are two of the most popular stablecoins pegged to the U.S. dollar. Both aim to bring stability to digital transactions, but they differ in how they’re backed, who issues them, and how they’re used.
Stablecoins have grown into a core component of modern financial infrastructure, powering everything from global payments to on-chain treasury management. Behind each stablecoin is an issuer—an organization responsible for creating, managing, and redeeming the digital asset. Stablecoin issuers maintain the reserves, smart contracts, compliance frameworks, and operational processes that keep a stablecoin trustworthy. While dozens of stablecoins exist, market activity is dominated by a handful of well-established issuers that prioritize regulatory oversight, asset backing, and liquidity.