Stablecoins are a key part of the fast-changing world of cryptocurrencies. They offer the stability of traditional currencies along with the advantages of blockchain technology. The most well-known stablecoins are USD Coin (USDC) and Tether (USDT).

Both are linked to the US dollar and are used for trading, payments, and as a store of value. Both are available as a on NOWPayments. But is there a difference between USDC and USDT? This article will look at the key differences, uses, and advantages of USDC and USDT to help you work out which is best.

What Are USDC and USDT?

To make a decision about which stablecoin fits your needs best, you need to find out what is USDC and USDT first.

USDC (USD Coin) and USDT (Tether) are two very popular stablecoins. Both are tied to the US dollar. They help smooth out the price swings seen with other cryptocurrencies like Bitcoin and Ethereum and are a great alternative to fiat if you want to accept payments in crypto.

USDC: Launched in 2018 by Circle and Coinbase, USDC is backed by US dollars held in secure, regulated banks. It works on many blockchain networks, like Ethereum, Algorand, and Solana. This makes it a popular choice for anyone involved in decentralized finance (DeFi).
USDT: Introduced by Tether Limited in 2014, USDT has a solid track record as one of the pioneers in the stablecoin world. Tether claims that every USDT is backed by a mix of cash and other assets. You can find USDT on such major blockchains like Ethereum, Tron, and Binance Smart Chain. It’s a popular choice because of its accessibility and liquidity.

Tether vs USDC on NOWPayments

Good news! Both USDC and USDT are available for payments on NOWPayments. If you want to set up a safe and secure payment gateway to accept payments in USDC or USDT, all you have to do is to follow these simple steps.

First, you need to sign up for a NOWPayments account. The process shouldn’t take more than a minute! However, if you need a step-by-step guide, you can always find it here.
Go to Store settings. Add your Tether or USD Coin wallet and create a new API key.
Choose the tool to add to your checkout.
The integration will be active on your website, and you’re ready to accept payments in a coin of your choice!

Here are all the payment methods available for USDC and Tether on NOWPayements:

	USD Coin	Tether
Payments
API	✔	✔
Payment Plugins	✔	✔
Invoices	✔	✔
Donations
Donation Button	✔	✔
Widget	✔	✔
Link	✔	✔

While NOWPayments offers a full range of integration options for both USDC and USDT, our customers have a clear preference for USDT! According to the latest data, USDT takes 53% of all transactions on the platform, while USDC is x5 less popular among our merchants. However, you should choose your preferred payment method based on your personal needs, and to do that, you need to understand all the key differences between the two.

Start Accepting USDT

Key Differences Between USDC and USDT

When comparing USDC vs USDT, several key factors differentiate the two stablecoins. These include transparency, regulation, and usage within the crypto ecosystem.

Transparency and Regulation:

USDC has earned a reputation for being an incredibly transparent stablecoin. Circle and Coinbase regularly roll out audited reports, giving everyone a clear look at the reserves backing USDC. This commitment to being open and playing by the rules has made USDC the go-to choice for institutions and individuals who value security and trust above all else.

USDT, however, has had its share of criticism. Not as transparent as USDC, Tether now provides regular updates on its reserves, but there’s still a bit of mystery about what exactly backs each USDT token. Yet, despite the whispers, USDT continues to reign supreme in the stablecoin market, thanks to its massive acceptance and unbeatable liquidity. It’s the stablecoin everyone uses, even if they occasionally raise an eyebrow.

Adoption and Liquidity:

USDC has seen significant adoption, particularly in the DeFi space. It is widely used on platforms like Aave, Compound, and Uniswap. While its liquidity is slightly lower than USDT, USDC’s reputation for transparency and compliance has made it a strong contender in the stablecoin market.

USDT is the most widely traded stablecoin in the world. It boasts the highest liquidity and is available on nearly every cryptocurrency exchange. This makes USDT the go-to stablecoin for traders looking for quick and easy conversions between digital assets.

Use Cases:

USDT is a popular trading currency because it’s easy to buy and sell. It is used as a safe haven when the market is volatile. Traders can use it as a stable asset without needing to convert it to fiat currency.

USDC is used in DeFi apps where trust and transparency are important. It is used a lot in lending, borrowing, and staking protocols. This makes it a popular choice for people involved in decentralized finance.

USDT vs USDC Development in 2024

Stablecoins are taking significant steps forward. Both Tether and USD Coin have recently made important updates, shaping the future of digital currencies. Here’s a quick look at their latest moves.

Recently, Tether announced plans to launch USDT pegged to the United Arab Emirates Dirham (AED). This initiative aims to tap into the Middle Eastern market, particularly in the UAE, where crypto adoption is growing rapidly. The AED-pegged USDT could provide a stable digital currency option for local businesses and individuals.

Meanwhile, USD Coin (USDC) has achieved compliance with the EU’s new Markets in Crypto-Assets (MiCA) regulation, positioning itself as a key stablecoin in the European market. This move reinforces USDC’s commitment to regulatory transparency and could drive wider adoption in the region.

Tether is expanding its presence in emerging markets, while USDC is exploring new use cases in decentralized finance (DeFi) and cross-border payments. Both stablecoins are actively adapting to global regulatory landscapes, signaling their strategic roles in the evolving crypto ecosystem.

Which Stablecoin Is Best in 2024?

Which stablecoin between USDT or USDC is best for you? It depends on what you need and want. Both stablecoins have unique advantages, and you can start accepting payments in both through NOWPayments. The best choice will depend on what you value most—whether it’s liquidity, transparency, or regulatory compliance.

For Traders: If you’re a trader who needs quick access to liquidity across a variety of exchanges, USDT is likely the better option to receive payments in. Its widespread acceptance and high trading volumes make it ideal for fast-paced trading environments.
For Institutional and DeFi Users: If you prioritize transparency, regulation, and trust, USDC is the stablecoin of choice. Its backing by audited reserves and regulatory oversight by US authorities make it a safer bet, particularly for institutional investors and those engaging in DeFi activities.

Conclusion: USDT or USDC?

In the USDC vs USDT debate, there is no clear-cut winner. Both stablecoins have proven their value in the cryptocurrency market, each with its strengths and weaknesses.

USDT remains the leader in terms of liquidity and exchange availability, making it indispensable for traders.
USDC, with its focus on transparency and regulatory compliance, is gaining ground, particularly among institutions and in the DeFi sector.

In conclusion, understanding the USDC and USDT difference and how these stablecoins fit into your financial strategy is essential for navigating the complex and dynamic world of digital assets. Whether you lean towards USDT or USDC, you can start accepting payments in both of them on NOWPayments today.