USDT vs Other Stablecoins: A Complete Comparison
Understanding the differences between major stablecoins to choose the right one for your business.
Overview of Major Stablecoins
The stablecoin market has grown significantly, with several options available for businesses and individuals. Each stablecoin has different backing mechanisms, regulatory compliance, and use cases.
Quick Comparison
| Stablecoin | Issuer | Backing | Market Cap |
|---|---|---|---|
| USDT (Tether) | Tether Limited | Cash, T-Bills, Commercial Paper | ~$95B+ |
| USDC | Circle | Cash, Short-term US Treasuries | ~$25B+ |
| DAI | MakerDAO | Crypto-collateralized | ~$5B+ |
| EURC | Circle | Euro reserves | ~$100M+ |
USDT (Tether)
USDT is the oldest and most widely used stablecoin. It's available on virtually every blockchain and exchange, making it the most liquid option for international payments.
Pros:
- Highest liquidity and trading volume
- Available on most blockchains
- Widely accepted globally
- Longest track record
Cons:
- Less transparent reserve reporting
- Past controversies about backing
- Not available in some jurisdictions
USDC (USD Coin)
USDC is issued by Circle and is known for its regulatory compliance and transparent reserve attestations. It's the preferred choice for businesses that prioritize compliance.
Pros:
- Monthly reserve attestations by major accounting firms
- Strong regulatory compliance
- Backed by US-regulated financial institutions
- Growing institutional adoption
Cons:
- Lower liquidity than USDT
- Can freeze addresses (centralized control)
- Temporarily depegged during SVB crisis
DAI
DAI is a decentralized stablecoin created by MakerDAO. It's backed by cryptocurrency collateral and governed by a decentralized autonomous organization.
Pros:
- Decentralized - no single point of failure
- Cannot be frozen or censored
- Transparent on-chain collateral
- Battle-tested since 2017
Cons:
- More complex mechanism
- Can depeg during extreme market volatility
- Lower liquidity than USDT/USDC
Which Stablecoin Should You Use?
Moneta's Recommendation
- For maximum liquidity: USDT
- For regulatory compliance: USDC
- For decentralization: DAI
- For Euro payments: EURC
Moneta supports all major stablecoins, so you can accept whichever your customers prefer.