USDT vs USDC: differences, reserves, freeze risk and cash out (2026)
USDT and USDC are both centralized stablecoins pegged to $1, but they are not the same asset: USDT is issued by Tether and its edge is trading liquidity and P2P coverage; USDC is issued by Circle and its edge is reserve disclosure frequency and the regulatory framework. If the goal is to "use" it — trading, moving funds, local off-exchange depth in USDT — look at USDT first; if the goal is to "park" it — valuing reserve disclosure and compliance — compare USDC; if the amount is large enough that you can't absorb a single issuer's risk, don't pick one of the two. This article covers reserves, transparency, freezing, depegging and cash-out paths for both.