USDT vs USDC: how the two biggest dollar stablecoins differ
By SendPay Business · · 2 min read
USDT and USDC are the two largest stablecoins: crypto tokens that aim to stay worth one US dollar each. USDT is issued by Tether and USDC by Circle. Both say every token is backed by reserves such as cash and short-term US government debt.
The main differences
- Issuer: USDT comes from Tether, USDC from Circle, a US company.
- Reporting: Tether publishes quarterly attestations of its reserves; Circle publishes monthly attestations by an accounting firm.
- Where they're used: USDT is the most traded stablecoin on exchanges worldwide, while USDC is widely used by US firms and apps.
What "backed" means
Both issuers say they hold reserves at least equal to the tokens in circulation and let approved customers swap tokens for dollars. An attestation checks the reserves at a point in time; it isn't the same as a full audit.
The risks
A stablecoin can briefly lose its peg if people doubt its reserves. In March 2023, USDC fell below one dollar for a few days after Circle disclosed that some of its reserves were held at Silicon Valley Bank, which had failed. It recovered once those funds were confirmed safe.
Where SendPay fits
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.