Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Apr 12, 2024
This article has been fact checked and reviewed as per our editorial policy.

USDC vs. USDT: Which Stablecoin is Better in 2024?

USDC and USDT are two of the biggest stablecoins available in 2024, but which is the better investment in 2024 out of USDC vs. USDT? Find out in our guide.

  • Stablecoins such as USDT and USDC play a vital role for crypto investors by offering a dependable value linked to fiat currency, aiming to mitigate exposure to market volatility.

  • Introduced in 2014 and 2018 respectively, USDT and USDC aim to maintain a value close to $1, supported primarily by short-term treasury reserves.

  • Despite their similar functions, USDT and USDC are different regarding transparency, backing, and controversies.

  • While USDT boasts a longer history and higher market capitalization, it has encountered issues regarding transparency and legality. On the other hand, USDC is perceived as safer due to regular audits and simpler reserve mechanisms.

  • The choice between USDT and USDC hinges on individual requirements and perspectives regarding safety, transparency, and utility.

USDC vs. USDT: An Overview

What is USDT (Tether)?

Tether (USDT), launched in 2014, is a stablecoin pegged to the US dollar and backed by a reserve comprising fiat currency and other assets.

However, USDT has encountered controversies. In 2021, regulatory authorities imposed a $41 million fine on Tether for misleading users regarding its asset reserves.

Nevertheless, USDT remains the most widely used stablecoin globally, partly owing to its status as one of the earliest stablecoins introduced. At the time of writing, USDT maintains its position as the largest stablecoin by market capitalization and enjoys support from numerous DeFi protocols.

USDT was first issued on Omni Layer, a Bitcoin protocol, but has since expanded to Ethereum, Tron, Solana, and more.

What is USDC (USD Coin)?

USD Coin (USDC), introduced in 2018 by Circle, is a relatively recent stablecoin. It first launched on the Ethereum blockchain, but has since expanded to other networks including Algorand, Solana, and Stellar.

Managed by the Centre consortium, comprising Circle and Coinbase, USDC is recognized for its transparency and adherence to regulatory standards, offering monthly audits of its reserve assets, and this is how it aims to compete with USDT.

While both USDT and USDC serve the same purpose, they differ in a few key aspects - most notably, in transparency, adoption, and reserves.

USDT vs. USDC: Comparing stablecoins


Tether, launched in 2014, has enjoyed greater adoption compared to USDC, which debuted in 2018. This longer presence in the market has allowed Tether to attract a larger user base over the years.

Winner: USDT

Reserve assets & transparency

Tether has faced scrutiny and fines for misleading users about its reserves. Investigations revealed that Tether only held 27.6% of the value of its stablecoin in reserves. In contrast, USDC, despite facing its own challenges such as the Silicon Valley Bank crisis, offers monthly third-party assurances of its reserves.

Winner: USDC

Regulatory compliance

All reserves backing USDC are held with regulated financial institutions, ensuring compliance with financial regulations. While Tether claims to follow world-class standardized compliance measures, there's a lack of transparency regarding these measures.

Winner: USDC


Both USDC and USDT are pegged to the value of the US dollar, maintaining a 1:1 ratio.

Winner: Tie


Tether's redemption service requires a minimum of 100,000 USDT ($100,000) with additional verification fees. USDC offers a simpler redemption process with a much lower minimum requirement of $100.

Winner: USDC

De-pegging incidents

Both USDT and USDC have experienced de-pegging incidents in which their value slipped below $1. However, both stablecoins managed to return to their pegged value within a short period.

Winner: Tie


Tether has been in the market since 2014, giving it a longer history compared to USDC, which launched in 2018.

Winner: USDT

Safety and transparency

While Tether has faced criticism for its lack of transparency, USDC's parent company, Circle, has consistently provided audited reports on its reserves, offering more transparency to users.

Winner: USDC

Which is Better: USDC or USDT?

The choice between USDT and USDC comes down to your individual preferences and what aspects you value more. If you prefer a more widely adopted coin, USDT is the better option. If you prefer a more transparent and better-regulated coin, USDC is the better option. 


Is USDC better than USDT?
Is USDC safer than USDT?
Are USDT and USDC the same?
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Is Tether safer than USDC?
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Can I transfer USDC and USDT to my bank account?
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How are stablecoins taxed?
Are there other USD stablecoins?
Can I use stablecoins for daily transactions?
Are there regulations for stablecoins like USDC and USDT?
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Where can I buy USDC?
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