USDT vs USDC: Key Differences Explained

USDT and USDC are both stablecoins designed to stay worth about one US dollar. USDT is issued by Tether and USDC by Circle. They differ in how their reserves are held and reported, which blockchains they run on, how they have held up under stress, and how US and EU rules treat them.

USDT and USDC are the two largest stablecoins: crypto tokens designed to stay worth about one US dollar. USDT is issued by Tether and USDC by Circle. If stablecoins are new to you, start with our guide to what a stablecoin is and how it works.

The two coins look alike, but they differ in how their reserves are held and reported, which blockchains they run on, how they have held up under stress and how US and EU rules treat them. This guide compares them side by side. It does not rank them, because both carry real risks. For live prices, see the USDC price and payment options and the Tether (USDT) price and payment options.

What is the difference between USDT and USDC?

The main difference is who issues each coin and how that company backs and reports its reserves. Tether issues USDT and publishes quarterly attestations; Circle issues USDC and publishes monthly reports, with most reserves in a US government money market fund. The table sums up the other differences.

Feature	USDT	USDC
Issuer	Tether	Circle
Launched	2014	2018
Tokens issued (issuer figures)	About $184.6 billion (June 30, 2026)	$75.2 billion in circulation (September 24, 2026)
Reserve reports	Quarterly attestations by BDO; first full audit, for 2025, by KPMG	Monthly reports by a Big Four accounting firm
Main reserves	Mostly US government-backed instruments and short-term liquidity; also gold, bitcoin and secured loans	Mostly the Circle Reserve Fund, a US government money market fund; the rest in cash at banks
Direct redemption with the issuer	Verified customers, US$100,000 minimum	Through Circle Mint, which is not available to individuals
Networks listed by the issuer	14	38
Past drop below $1	On a few exchanges, May 2022	Low of about 86 cents, March 2023
Issuer can freeze tokens	Yes	Yes
EU (MiCA) issuer status	No Tether company in ESMA’s register	Circle Internet Financial Europe SAS listed in ESMA’s register

Last checked: September 2026. Sources are listed below.

Who issues USDT and USDC?

USDT is issued by Tether, and USDC is issued by Circle. Each company creates tokens for approved customers who send it dollars, and redeems tokens for dollars when those customers return them.

USDT launched in 2014. Tether reported about $184.6 billion of USDT issued at the end of June 2026. Our guide to what Tether (USDT) is covers its background.
USDC launched on September 26, 2018. Circle reported $75.2 billion of USDC in circulation on September 24, 2026. Our guide to what USDC is explains it in more depth.

As of September 2026, stablecoin data from DefiLlama ranks USDT first and USDC second by the amount in circulation. The next dollar stablecoin is far smaller.

Most individuals cannot redeem directly with either issuer. Tether’s minimum redemption is US$100,000 for verified customers, plus fees. Circle says Circle Mint, its service for creating and redeeming USDC, is not available to individuals. Most people buy and sell both coins on crypto platforms, where the price can drift slightly away from $1.

How are USDT and USDC reserves backed and reported?

Both issuers say every token is backed by reserves, but they hold different assets and publish different reports. Tether reports quarterly and Circle reports monthly. This is about what each company publishes, not a verdict on which coin is safer.

Tether publishes quarterly attestations prepared by the accounting firm BDO. Its report for June 30, 2026 showed reserves exceeding liabilities by about $4.1 billion. Tether says most reserves are in US government-backed instruments and short-term liquidity facilities. It also holds gold, bitcoin and secured loans. In August 2026 Tether published its first full audit: KPMG gave an unqualified (clean) opinion on the 2025 financial statements of Tether International.

Circle says USDC is backed by cash and cash-equivalent assets. Most of the reserve is in the Circle Reserve Fund, a US government money market fund managed by BlackRock. The rest is held as cash at large banks. A Big Four accounting firm reports on the reserves every month.

An attestation checks the issuer’s reserve report at one point in time. An audit examines full financial statements for a whole period. You can read the reports yourself on Tether’s transparency page and Circle’s transparency page.

Which blockchains do USDT and USDC run on?

Both run on many blockchains, and neither has a blockchain of its own. Each coin is issued as a token on existing blockchains, and the issuer decides which ones it supports.

USDT: as of September 2026, Tether lists 14 supported networks, including Tron, Ethereum, Solana, TON, BNB Smart Chain, Avalanche and Aptos. Tether no longer issues or redeems USDT on Omni, Bitcoin Cash SLP, Kusama, EOS or Algorand.
USDC: as of September 2026, Circle lists 38 networks, including Ethereum, Solana, Base, Arbitrum, Polygon PoS, Stellar and Avalanche.

The two lists overlap but are not the same, and both change over time. Check the issuer’s current list before you rely on a network.

Why does the network matter when you send USDT or USDC?

Because the same coin on two different networks cannot be sent directly from one to the other. USDT on Tron and USDT on Ethereum share a name, but a transfer only works when the sender and the receiving address use the same network. The same goes for USDC. Before you send either coin:

Check the network. Find out which network the receiving wallet or platform expects for that coin.
Match it when you send. Pick that same network when you send or withdraw.
Keep some of the network’s own coin. Hold a little ETH on Ethereum or TRX on Tron to pay the network fee.
Send a small test first. Do this whenever the address is new to you, then send the rest.

Sending on the wrong network can leave tokens where the recipient cannot reach them, and blockchain transactions cannot be reversed. If you are still choosing where to keep your coins, our guide to what a crypto wallet is explains the options.

Have USDT or USDC ever lost their dollar peg?

Yes. Both have briefly traded below $1, which is known as losing the peg or depegging. Both recovered, but each episode showed a different kind of risk.

USDC, March 2023: on March 10, 2023, Circle said $3.3 billion of USDC reserves, about 8% of the total, were held at Silicon Valley Bank, which had failed. USDC fell to about 86 cents at its low, according to a Federal Reserve analysis. It recovered after US authorities announced a backstop for the bank’s depositors on March 12, and fully recovered once Circle resumed redemptions on March 13.
USDT, May 2022: during the collapse of the TerraUSD (UST) stablecoin, USDT’s price moved below $1 on a few exchanges on May 11 and 12, according to Tether. Tether said it processed about $7 billion of USDT redemptions in the days that followed.

Past performance does not predict future results. A stablecoin that recovered once can still lose its peg again.

Can Tether or Circle freeze USDT or USDC?

Yes. Both issuers can block addresses and freeze the tokens held there. Circle’s USDC terms let it block addresses that may be linked to illegal activity, and freeze USDC when a valid government authority orders it to. Tether’s terms let it freeze tokens and blacklist addresses where the law requires it or where it suspects a breach of its terms.

These powers are used. In April 2026, Tether said it helped US authorities freeze $344 million of USDT across two addresses. With a stablecoin issued by a company, the issuer keeps some control over the tokens, even after they reach your wallet.

What does the US GENIUS Act mean for USDT and USDC?

The GENIUS Act is the US federal law for payment stablecoins such as USDT and USDC. It was signed on July 18, 2025, and sets rules for the companies that issue them to people in the United States.

The Act requires issuers to hold at least one dollar of approved reserves, such as cash and short-term US Treasury bills, for every token. They must also publish the makeup of their reserves every month. The Act takes effect on January 18, 2027, or 120 days after US regulators issue final rules, whichever is earlier. As of September 2026, regulators including the OCC and the US Treasury had published proposed rules, but no final rules.

Tether has taken a two-token approach. In January 2026, Tether and Anchorage Digital launched USA₮, a separate stablecoin for use within the United States, issued by Anchorage Digital Bank. USDT continues as Tether’s token for its global users.

How does the EU’s MiCA law treat USDT and USDC?

Under MiCA (the EU’s Markets in Crypto-Assets Regulation), a stablecoin tied to one currency, called an e-money token, may be offered to the public in the EU only if its issuer is authorized there. These stablecoin rules have applied since June 30, 2024.

As of September 2026, the register of e-money token issuers kept by ESMA, the EU markets authority, lists Circle’s French company, Circle Internet Financial Europe SAS, for USDC. No Tether company appears in that register.

In January 2025, ESMA said crypto-asset service providers in the EU should stop offering stablecoins from issuers that are not authorized in the EU by the end of March 2025. It also said that simply holding and transferring those tokens should remain possible.

How can you compare USDT and USDC before you choose?

Compare them on facts you can check yourself, not on a ranking. Both coins carry risks, and the right questions matter more than a verdict:

Reserves: read the issuer’s latest report and check its date and what it covers.
Track record: look at how the coin behaved under stress, and remember the past is no promise.
Rules where you live: US and EU rules treat the two issuers differently, and they are still changing.
Network: make sure your wallet supports the network you plan to use.
Control: both issuers can freeze tokens, so a stablecoin is never fully outside the issuer’s reach.

Stablecoins are not bank deposits, and no government insures them. Weigh that before you decide to hold either coin.

Neither is free of risk, and this guide does not rank them. Compare what each issuer publishes about its reserves, how each coin has held up under stress and the rules where you live.

No. USDT and USDC both aim for $1, but they can trade slightly above or below it, and both have briefly fallen further in the past.

Not safely. USDT and USDC are different tokens. If a platform gives you an address for USDC deposits, USDT sent to it may not be credited and can be hard or impossible to recover. Swap first, and always match the network.

Under MiCA, crypto-asset service providers in the EU are expected not to offer stablecoins whose issuer is not authorized in the EU. As of September 2026, no Tether company appears in the EU register of e-money token issuers.

Yes, on platforms that support both. A swap usually involves fees or a small price difference, so check the amount you will receive before you confirm.

Sources