USDC and USDT are both stablecoins pegged to the value of the U.S. dollar, but their respective features and backstories differ significantly.

USDC is like a prepaid card issued by a large, well-funded bank. Obtaining this card is not easy and requires going through a series of rigorous review processes. USDC is backed by well-known companies such as Circle and Coinbase. Its operations are strictly supervised by U.S. laws throughout the entire process, and detailed audit reports are released every month, which makes users feel reassured about the transparency and compliance of USDC.

In comparison, USDT resembles a product issued by a veteran stored-value card company. It has a broad user base in the market, but may not be as strict as USDC in terms of auditing and transparency. In the past, the market has also had doubts about the adequacy of USDT’s reserves. However, because USDT entered the market earlier, has many users, and has good liquidity, it is still very popular in the market, similar to the stored-value cards we use every day, although not everyone understands the mechanism behind it.

Although both USDC and USDT can be exchanged for 1 token for 1 US dollar, their status in the hearts of users is different. USDC has earned trust for its transparency and compliance; USDT is favored for its good liquidity and broad user base. Both have their advantages, and which one to choose depends more on personal needs and preferences.