The two leading stablecoins on the market are USDT (Tether) and USDC (Circle). Together they account for about 85-90% of the stablecoin market capitalization. At first glance, they look identical: both are pegged to the dollar, both operate on multiple networks. In practice, there are differences, and depending on the use case, those differences matter.

Who Stands Behind Each

Tether Limited (USDT) is a private company registered in Hong Kong with offshore structures. It was founded in 2014. It has conducted several rounds of reserve audits but has never published a full public balance sheet in the format of standard financial reporting. This often invites criticism and speculation.

Circle (USDC) is a public company based in the US, regulated as a money services business. Its reserves are audited monthly by Deloitte. In 2024, it was listed on the NYSE. This is the most regulated-friendly stablecoin on the market.

Where USDT Dominates

Asian markets, CIS countries, Latin America, OTC operations, and trading pairs on international exchanges (Binance, Bybit, OKX). USDT trading volumes are several times higher than USDC. If you need to buy an altcoin on a major exchange, the pair will most likely be against USDT.

Where USDC Dominates

The US, regulated DeFi protocols, corporate clients, and the EU after MiCA. Coinbase prefers USDC as its primary stablecoin. After Tether failed to obtain a MiCA license in the EU in early 2025, USDT began to be gradually delisted on European exchanges, and USDC took its place.

When to Choose Which

If you need international transfers and maximum liquidity, go with USDT on TRC-20. If you are dealing with a European or American regulated exchange, choose USDC. For DeFi on Ethereum, USDC is more common; for DeFi on BNB Chain, USDT is more common. For long-term storage of large amounts, some risk managers recommend USDC due to its more transparent reserves.

One Technical Note

In the event of sanctions or a judicial freeze, both issuers can freeze an address: Tether and Circle have both done so multiple times at the request of regulators. Therefore, if the goal is maximum censorship resistance, stablecoins are not the solution; in this sense, they are closer to bank accounts than to Bitcoin.

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