Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Difference Between USDT and USDC

This article explores the key differences between USDT and USDC, two popular stablecoins in the cryptocurrency space, including their issuers, audits, and underlying technologies.
2024-07-01 07:27:00share

When it comes to stablecoins, USDT and USDC are two of the most well-known options in the cryptocurrency market. While they both aim to provide stability by pegging their value to a fiat currency, there are some key differences between the two that users should be aware of. In this article, we will explore the nuances of USDT and USDC, including their issuers, audits, and underlying technologies.

Origins and Issuers

One of the primary differences between USDT and USDC lies in their origins and issuers. USDT, or Tether, was launched in 2014 by the company Tether Limited. Tether Limited claims that each USDT token is backed by one US dollar held in reserve. However, the company has faced scrutiny in the past for not providing transparent audits to verify these claims.

USDC, on the other hand, was launched in 2018 by Circle, a cryptocurrency finance company. USDC is issued by regulated financial institutions and is subject to regular audits by accounting firms to ensure that each token is fully backed by US dollars. This increased transparency and regulatory compliance have contributed to USDC's growing popularity among cryptocurrency users.

Audits and Transparency

Transparency is a crucial factor when evaluating the trustworthiness of a stablecoin. In the case of USDT, the lack of consistent audits has led to skepticism among some members of the cryptocurrency community. While Tether Limited has claimed to undergo audits, the company has struggled to provide conclusive evidence of full dollar-backing for each USDT token.

In contrast, USDC has taken a proactive approach to transparency and accountability. Each month, the issuer of USDC publishes reports from independent third-party accounting firms that verify the amount of US dollars held in reserve to back the circulating supply of USDC tokens. This commitment to regular audits has helped to instill confidence in USDC as a reliable stablecoin option.

Underlying Technologies

Another important distinction between USDT and USDC lies in their underlying technologies. USDT is primarily issued on the Omni Layer, a platform built on top of the Bitcoin blockchain. While USDT has also been issued on other blockchains, such as Ethereum and Tron, the Omni Layer remains a significant component of its infrastructure.

USDC, on the other hand, is an ERC-20 token, meaning that it operates on the Ethereum blockchain. This choice of blockchain has enabled USDC to benefit from the vast ecosystem of decentralized applications (DApps) and smart contracts built on Ethereum. Additionally, USDC transactions are faster and more cost-effective than those of USDT due to the efficiency of the Ethereum network.

In summary, while both USDT and USDC aim to provide stability in the volatile cryptocurrency market, there are notable differences between the two. USDC offers greater transparency through regular audits, while USDT has faced criticism for its lack of conclusive evidence regarding its dollar backing. Additionally, USDC's choice of the Ethereum blockchain provides users with faster and more cost-effective transactions compared to USDT. Ultimately, the choice between USDT and USDC will depend on users' preferences for transparency, reliability, and transaction efficiency in their stablecoin holdings.

USDC
USDC
USDC price now
$0.9999
(-0.01%)24h
The live price of USDC today is $0.9999 USD with a 24-hour trading volume of $10.90B USD. We update our USDC to USD price in real-time. USDC is -0.01% in the last 24 hours.

Trending assets

Assets with the largest change in unique page views on the Bitget website over the past 24 hours.

Popular cryptocurrencies

A selection of the top 12 cryptocurrencies by market cap.
Download app
Download app