What is the difference between usdt and usdc? Learn about the information in the currency circle in one article

Tether (USDT) and USD Coin (USDC) are both stablecoins designed to maintain their 1:1 value peg to the US dollar. However, there are key differences in issuers, transparency, regulation, speed and expenses. USDT is issued by Tether and has low transparency and is not regulated yet. USDC is issued by Circle Consortium, providing greater transparency and is registered with the New York Department of Financial Services. USDT has a better advantage in transaction speed and cost, while USDC has a high reputation for security, claiming to be backed by cash and U.S. Treasury bonds from qualified custodians.

The difference between USDT and USDC

USDT (Tether) and USDC (USD Coin) are stablecoins, In 1:1 peg with USD. However, there are some key differences in the way the two work:

1. Issuing agency:

• USDT is issued by Tether and is a private company.
• USDC is issued by Circle Consortium, a centralized consortium managed by a group of financial institutions, including Coinbase and Circle.

2. Transparency:

USDT has a lower transparency. The company provides only limited information to prove its reserves.
• USDC provides monthly reporting of its assets and liabilities and is audited regularly.

3. Legal Supervision:

USDT is not regulated by any regulatory authority.

• USDC is registered with the New York Department of Financial Services (NYDFS) and approved.

4. Trading speed:

USDT usually has faster trading speeds than USDC because it is based on Omni Layer and Tron networks, etc. Various blockchains.

• USDC is mainly based on the Ethereum blockchain, and transaction speeds may be slower and more expensive.

5. Transaction Fees:

USDT’s transaction fees are usually low In USDC, it depends on the exchange and blockchain used.

• 6. Security:

Both use encryption technology to protect user funds from hackers and fraud.

The security of USDT has been questioned in recent years as Tether has been accused of issuing unsupported tokens.

• USDC claims to be backed by cash and U.S. Treasury bonds from qualified custodians, so it is more secure.

Official website of trading platform for usdt and usdc

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Conclusion:

USDT and USDC are stablecoins with different issuing agencies, levels of transparency and regulatory frameworks. USDT usually has faster transaction speeds and lower fees, while USDC provides greater transparency and security. Users should consider these differences when choosing a stablecoin to meet their specific needs and risk tolerance.

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