What are the differences between USDC and Tether?

Krishna ShahApr 23, 2022 · 3 years ago1 answers

Can you explain the key differences between USDC and Tether? I'm interested in understanding the variations in terms of their underlying technology, stability, and regulatory compliance.

USDC

Tether

Stablecoin

1 answers

Apr 23, 2022 · 3 years ago
USDC and Tether are both stablecoins, but they have significant differences. USDC is an ERC-20 token built on the Ethereum blockchain, while Tether operates on multiple blockchains. USDC is backed by a reserve of US dollars held in a bank account, which is regularly audited to ensure transparency and stability. Tether, on the other hand, has faced questions about the composition of its reserves and lacks the same level of transparency. USDC is issued by regulated financial institutions, providing users with a more secure and compliant option compared to Tether.