USDT vs USDC: what's the difference?

Both are tokens designed to stay at $1, and both are used everywhere in crypto. They differ in who issues them, what backs them, how often that is checked and where you can use them.

Who issues them

• USDT (Tether) is issued by Tether, a private company. It is the largest stablecoin by supply.
• USDC is issued by Circle, a US company that has been publicly listed since 2025.

What backs them

• USDC is backed by cash and short-term US government debt.
• USDT is mostly backed by the same kinds of assets, but its reserves also include other assets such as bitcoin, gold and secured loans.

How the reserves are checked

Both publish attestations: an accounting firm confirms the reserves on a given day. Circle publishes them monthly, and Tether publishes them quarterly. An attestation is a snapshot, which is less than a full audit.

Where you can use them

• Europe. USDC is authorised under the EU's MiCA rules and USDT is not, so some platforms limit USDT for EU users.
• United States. The GENIUS Act, signed in July 2025, sets federal rules for payment stablecoins. Check which tokens your platform supports.
• Networks. USDT is especially common on Tron and Ethereum. USDC is especially common on Ethereum, Base, Arbitrum and Solana. Both exist on many networks.

Which one should you hold?

That depends on where you need to use it, and it's your decision. This isn't advice. In practice, most people use whichever one the exchange, app or person they deal with accepts on the network they use.

How to switch between them

1. Open the swap page and connect your wallet.
2. Pick your network. Sell USDT and receive USDC, or the other way round.
3. Check the quote. The two tokens are both worth about $1, so the fees are most of the difference.

Nothing here is financial advice. Crypto transactions cannot be reversed.