What is USDC: The Most Transparent Stablecoin on the Market
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While USDT dominates by volume, USDC has established itself as the regulated alternative of reference. Created in 2018 by Circle and Coinbase, USDC offers what many investors look for in a stablecoin: verifiable transparency and solid regulatory standing, especially relevant under the EU’s MiCA framework.
What is USDC
USDC (USD Coin) is a stablecoin issued by Circle, initially in partnership with Coinbase through the Centre consortium (now managed directly by Circle). Launched in 2018 as an ERC-20 token on Ethereum, it is also available on Solana, Stellar, Algorand, Avalanche, Base, and other networks.
Like USDT, 1 USDC = $1 USD. The fundamental difference lies in how that dollar is backed.
Reserves and transparency
Circle publishes monthly attestations by Deloitte (since 2022). USDC reserves consist exclusively of:
- Cash in insured bank accounts
- Short-term US Treasury bills (T-bills)
No commercial paper, no loans to affiliated companies. This is the key differentiator from USDT, which has faced controversy over reserve composition.
Regulatory advantage post-MiCA
The EU’s MiCA regulation, in force since 2024, sets strict requirements for stablecoin issuers: full reserves, independent audits, and authorization as an e-money token issuer.
Circle has been one of the most proactive issuers in adapting to MiCA — a significant advantage for European users, as USDC can operate with full guarantees in the EU while USDT faces greater regulatory uncertainty.
USDC vs USDT: comparison
| Feature | USDC | USDT |
|---|---|---|
| Issuer | Circle | Tether Ltd |
| Reserves | 100% cash + T-bills | Mix (cash, bonds, other) |
| Audits | Monthly by Deloitte | Quarterly reports |
| MiCA regulation | Better positioned | Greater uncertainty |
| Liquidity/Volume | High | Very high (higher) |
| Blockchains | Ethereum, Solana, Stellar, Base, others | Ethereum, Tron, Solana, others |
When to choose USDC over USDT
Choose USDC if you prioritize reserve transparency, operate primarily in the EU under MiCA, or use it for long-term savings (see how to protect your savings from inflation).
USDT remains the better choice if you need the highest possible liquidity or primarily work on Tron (TRC-20) for its low fees.
For more context, read what is USDT and what are stablecoins.
You can buy USDC directly on Kraken, a regulated exchange available across Europe and worldwide.
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