USDC vs. USDT
The cryptocurrency ecosystem cannot do without stablecoins, they are the bridge between the world of cryptocurrencies and the stability of fiat currencies. USDC vs. USDT – USDC (USD Coin) and USDT (Tether) are the most prominent stablecoins. This piece explores their key differences, recent developments, adoption, reserve transparency, regulatory compliance, investment potential, purchasing methods and tax implications.

What is USDC?
Circle and Coinbase launched USD Coin (USDC), a stablecoin pegged to the US dollar, in 2018. It runs on the Ethereum, Solana and Polygon blockchain networks and seeks to offer a secure and transparent digital dollar.
The value of USDC is fully reserved in US-regulated financial institutions. USDC has become a favorite among institutions and individuals alike thanks to Circle’s emphasis on compliance and transparency.
Recent News About USDC
- 1. USDC’s reach expanded as Circle recently announced integration with new blockchain networks.
- 2. It has also seen partnerships with fintech companies and governments to build digital payment systems.
- 3. The monthly reserve reports Circle releases to its users continue to cement trust.

What is USDT?
The first and most used stablecoin was Tether (USDT), launched in 2014. It is issued by Tether Limited and also maintains a 1:1 peg to the US dollar. USDT also runs on the Ethereum, Tron, and Binance Smart Chain networks, just as USDC does.
USDT is used widely in crypto trading because it provides liquidity and allows traders to move funds quickly from one platform to another.
Recent News About USDT
- 1. Stablecoin market dominance went to Tether, which announced record profits.
- 2. Tether’s investments in Bitcoin and other non cash reserves has been highlighted in a recent report which has raised questions about its reserve transparency.
- 3. The global adoption of Tether has been quickened with its expansion into emerging markets.
Adoption
USDC: Highly accepted amongst institutional investors and businesses due to its regulatory compliance and transparency. It’s often used in DeFi platforms and cross border payments.
USDT: Centralized exchanges dominate the trading landscape and have significant usage there. The traders find it a go to due to its availability and liquidity.
Reserve Assets and Transparency
USDC: Monthly reserve attestations are published by Circle, audited by a reputable third party. These reserves are backed 1:1 in cash and short term US treasury bonds so they are fully backed and compliant with regulatory oversight.
USDT: Tether gives breakdowns of its reserves but has been criticized for not having an adequate audit. Transparency is a contentious issue with its reserves including cash, cash equivalents and other assets.
>>>Don’t miss the latest comparison of How Much Will Bitcoin Reach in 2025?!
Regulatory Compliance
- USDC: Allowing it to be attractive to institutions, as it is completely compliant with US regulations.
- USDT: It is facing ongoing regulator scrutiny over historical controversies over reserve transparency.
Investment Potential
USDC and USDT are meant to have a stable value which makes them unavailable for any speculative investment. However, they are useful for:
- Yield farming and staking: The perceived safety of USDC makes it often preferred for DeFi protocols.
- Liquidity and trading: With USDT’s dominance in trading pairs, active traders simply can’t do without it.
The First Hybrid Crypto Exchange SLEX
Trade with RWA, Commodity, AI Bots

Your daily activity on SLEX now brings you rewards!
Accumulate Goldi coins that will soon unlock exclusive opportunities!
Which Is Better?
For greater transparency and regulatory compliance, USDC is the better choice. USDT does the job for liquidity and trading convenience. The recent news of Tether’s reserve practices might scare away risk averse USDT investors.
Where To Buy USDC and USDT?
USDC and USDT are available to purchase on major cryptocurrency exchanges like SLEX. SLEX provides a smooth interface, low trading fees and a secure place to purchase and sell these stablecoins. To purchase on SLEX:
1. Complete KYC verification and sign up.
2. Fund deposits are made through bank transfer, credit card or crypto wallet (buy USDT no KYC).
3. Click USDC or USDT in the trading section.
4. Store your stablecoins securely and execute your trade.
Stablecoins are taxed
Stablecoin taxation varies by jurisdiction but generally includes:
- 1. Capital gains tax: Any gain from exchanging stablecoins for other cryptocurrencies or fiat may be taxable.
- 2. Income tax: Income earned as stablecoins are subject to income tax.
- 3. Record-keeping: The transactions of stablecoin should be ensured to be recorded accurately for simplifying the process of tax filing.
FAQ
Is it safe to leave USDC and USDT in your wallet long term?
USDC is safer because it is transparent and regulated, while USDT’s safety is based on reserve practices.
Can international transfers be done using USDC or USDT?
Both are good for fast and cheap international transfer.
What is the cost of sending USDC and USDT?
The fee depends on the blockchain network. Solana and Tron are much cheaper than Ethereum transactions.
Is stablecoin holding risky?
All these are risks – counterparty risk, regulatory changes, and de-pegging during extreme market conditions.
What’s so special about SLEX when it comes to buying stablecoins?
SLEX’s low fees, easy to use platform and emphasis on security makes it a top choice for buying USDC and USDT.
Author

James Roy. An expert in trading and cryptocurrency at our company, leveraging his extensive experience to develop a deep understanding of market dynamics and trends. Also a prolific author, using his expertise to create insightful content for our company blog, where he shares valuable knowledge with the community and contributes to the ongoing conversation in this rapidly evolving industry.