USDT vs USDC: how the stablecoins differ
USDT and USDC differ in issuer, reserves, and regulation. Tether issues USDT offshore; Circle issues USDC and is US-regulated with monthly attestations.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- USDC publishes monthly attestations; USDT publishes quarterly.
- Both stablecoins can lose their dollar peg.
- USDC briefly broke its peg in March 2023.
A stablecoin is a digital currency whose value aims to stay stable relative to a national currency such as the US dollar. Tether launched USDT in 2014, and Circle issues USDC, but the two follow different reporting and regulatory paths.
USDT vs USDC side-by-side comparison
The table compares USDT and USDC on issuer, reserves, attestations, and regulation.
Who issues USDT and USDC?
Tether issues USDT, and Circle Internet Group issues USDC. Tether Limited launched USDT in 2014, while Circle issues USDC as a stablecoin pegged to the US dollar.
What backs USDT and USDC?
The reserves behind each stablecoin are described in different ways.
- USDT reserves include cash, equivalents, and other assets.
- USDC holds cash and US Treasuries.
- Tether says its tokens are fully backed; Circle replaced backed by US dollars with backed by fully reserved assets in June 2021.
How transparent are USDT and USDC?
USDC publishes monthly attestations, while USDT publishes quarterly attestations. Tether has faced criticism over whether its claimed fiat reserves are transparent and can be verified. Circle announced in January 2023 that Deloitte had been hired to audit its USDC reserve reporting.
How are USDT and USDC regulated?
USDC is regulated in the US, while USDT operates offshore with less oversight. Circle issues USDC under US regulatory requirements, while Tether operates outside the US regulatory framework.
Frequently asked questions
Yes. The IRS treats both as property, like other cryptocurrencies. Buying either with US dollars is not a taxable event, but trading one for the other or paying with either can create a taxable gain or loss.
Yes, you can usually swap them on crypto exchanges. The swap is still a taxable trade because you exchange one crypto asset for another.
There is no single answer, because acceptance depends on the merchant and region. Tether says its tokens serve merchants, while Circle says USDC connects dollars with trading on exchanges.
