USDC or USDT: Which Stablecoin to Choose in 2025

A comparison of cryptocurrencies will allow you to evaluate the strengths and weaknesses of each of them. They maintain competition at the current level. What do USDC and USDT have in common? Both stablecoins are backed by fiat currencies, which ensure stability.

USDC or USDT? Current review

The cost of coins is defined as approximately the same, and the reason for this is the peg to the dollar. Considering that stablecoins are used to conduct transactions in their ecosystems, the stability of the rate allows us to highlight the main features of each.

What is Tether (USDT)?

The cryptocurrency was released in 2014. It is not surprising that over the decade, the token has gained particular popularity. To understand what USDT is, pay attention to:

• Duration. Since the launch of tokens in 2014, the ecosystem has remained virtually unchanged.
• Penalties. The scandal of 2021 should have changed the attitude of holders, but this did not happen. The founder paid the fine and kept the ecosystem stable.
• Market capitalization. USDT is considered the most stable cryptocurrency. Thanks to this, the value of the coins is fixed and guarantees capitalization.

There are different versions of the stablecoin available on the market, including those developed for Ethereum, Tron, BNB Chain,  Solana, and several others blockchains.

What is USD Coin (USDC)?

This coin appeared on the market in 2018, and its creation was handled by the company Circle. The launch on the Ethereum platform was successful, and today the token is offered by several ecosystems.

USDT vs USDC. Comparison of stablecoins

When comparing the two stablecoins, the most attention is paid to transparency, adoption, and reserves. However, other parameters are worth considering when choosing between Tether (USDT) and USDC.

Adoption

Tether's appearance in 2014 did not go unnoticed. Due to its long development period, the stablecoin is used more often than the new coin. At the same time, both cryptocurrencies maintain a high level of popularity. One due to its long presence in the market, and the second due to transparency and monthly audits.

Reserve assets and transparency

Tether users were surprised to learn that the token is only 27.6% reserved. The company has been audited and received fines totalling 41 million. In turn, the USD Coin is regularly audited and confirms the presence of reserves for the declared value of the issued stablecoins. The issue with the Silicon Valley bank did not affect this, which makes the new coin the winner in this category.

Regulatory compliance

USDC will again be a winner, as it provides the required transparency and complies with regulatory standards. Although the founders of Tether are trying to convince the community of their compliance, some doubts remain.

Price

There is no point in comparing the price. Both cryptocurrencies are tied to real assets and the dollar exchange rate.

Redemption (redemption time)

Competitors are fighting for supremacy, but the USD Coin wins. Redemption does not require a complex procedure and checks. In addition, the declared price is $ 100. Redeeming Tether means losing $ 100,000 and the need to check transparency.

Unpegging

Unpegging did not bypass the coins. Both Tether and USDC were affected. As a result, the price fell below one dollar. However, the situation quickly returned to normal.

Durability

Tether (USDT) has reached ten years of use, so it comes out the winner. USDC, although released four years later, gives hope for a long existence. Despite this, Tether is considered the favourite.

Security and transparency

USDC can compete with Tether because the parent company undergoes regular checks. The USD Coin confirms transparency every month. Tether can't boast the same result.

Conclusion: USDC or USDT?

Choosing between the two cryptocurrencies is not easy without knowing their strengths. Fans of stability and widespread adoption choose Tether. Those who care about transparency and compliance stop at USD Coins.