In 2024, the volume of transactions in stablecoins exceeded $10 trillion: this is more than the annual GDP of most countries in the world. Over the past three years, the percentage of companies integrating USDT and USDC into their corporate finances has more than doubled. Why? Because stable cryptocurrencies have become not just a trend but the foundation for fast, transparent, and global transactions.
Today entrepreneurs and financial directors face a paradox: on one hand, the desire for innovation, on the other: increasing requirements for compliance, transparency, and risk management. How to choose between USDT and USDC for international transactions? How to ensure security, liquidity, and compliance with regulatory standards?
In this article, I, Nikita Veremeiev, CEO of COREDO, share the practical experience of the COREDO team in implementing stablecoins into the business processes of clients from the EU, Asia, and the CIS. We will examine the key differences between USDT and USDC, assess risks and advantages, and most importantly: offer strategic insights for your business. If you are looking for practical solutions and a deep understanding, I recommend reading to the end: here you will find answers that will help you make decisions at the level of international corporate governance.
Main differences between USDT and USDC for business
Issuers and reserve backing structure
USDT is issued by Tether Limited, and USDC by the CENTRE consortium, founded by Circle and Coinbase. In practice, this means differences in reserve management and backing approaches.
- USDT is backed by a combination of assets: bank reserves, short-term US Treasury bills, commercial paper, and other instruments. However, Tether’s reserve structure has historically raised questions from auditors and regulators. Despite regular reports, the level of transparency is limited: third-party auditors are engaged irregularly, and the issuer’s financial statements do not always disclose the full composition of assets.
- USDC is backed exclusively by highly liquid assets: bank reserves and short-term US Treasury bills. Audit and reporting of USDC reserves are conducted monthly by independent auditors, allowing corporate clients to gain maximum transparency and confidence in asset stability.
Transparency and regulation of stablecoins
In recent years, the regulation of stablecoins in the US, EU, and Asia is tightening. For corporate clients, this means the need to verify the origin of funds, undergo KYC procedures, and comply with AML compliance.
- USDT has faced claims from regulators related to insufficient reserve transparency and a history of legal disputes. Despite this, Tether has strengthened compliance control and started publishing more detailed reports; however, the level of transparency still falls short of USDC.
- USDC was initially created as a compliance-oriented product. The issuer Circle fully complies with AML/KYC requirements, and the issuer’s financial statements are regularly audited by independent auditors. This facilitates the integration of USDC into corporate processes, especially for companies operating in strictly regulated jurisdictions in the EU and Asia.
Technological differences and blockchain support
Both stablecoins are supported on multiple blockchains, providing flexibility for integration into corporate fintech solutions.
- USDT is available on Ethereum, Tron, BNB Chain, Solana, and other networks. This provides maximum multi-blockchain support and minimizes transaction costs, especially when using Tron.
- USDC is also supported on Ethereum, Solana, Avalanche, Algorand, and several other blockchains. However, in some networks, USDC’s liquidity is lower than USDT, which can affect the cost and speed of cross-border transactions.
Why USDT is more popular than USDC: analysis of market capitalization and liquidity
Scale of distribution and liquidity on exchanges
USDT holds leading positions in market capitalization and liquidity among all stablecoins. On most crypto exchanges, USDT is the main instrument for settlements, trading, and fund withdrawals.
- USDT liquidity is maximum on major exchanges: in terms of trading volume and the number of supported pairs, it surpasses USDC multiple times. This is critical for companies that need to quickly conduct large international payments and manage corporate liquidity in real-time.
- USDC shows high liquidity in the B2B segment and among fintech companies, but in terms of trading volume, it lags behind USDT. In corporate transactions, USDC is more commonly chosen by companies prioritizing compliance and transparency over maximum transaction speed.
Trust factors and user preferences
Despite questions about Tether’s reserve transparency, USDT continues to dominate thanks to its historically established infrastructure and resilience to market volatility. For many companies, the trust factor is determined not only by transparency but also by the practical ability to quickly perform operations with minimal costs.
- USDT is chosen for its speed, liquidity, and broad support on exchanges and OTC platforms.
- USDC is becoming the standard for corporate clients focused on long-term reliability, minimization of blockage risks, and meeting regulatory requirements.
Transparency, compliance, and audit: how to choose a stablecoin for business
Impact of reserve transparency on trust and compliance
- USDC provides maximum transparency: monthly audits, publication of financial statements, independent third-party auditors. This is critically important for companies undergoing international audits and working with corporate clients from the EU and Asia.
- USDT publishes reserve reports, but their detail and frequency lag behind USDC. For companies where reserve transparency is a key criterion, USDT may not comply with internal compliance control policies.
AML/KYC and regulation in the EU, Asia, and the US
- USDC fully complies with AML/KYC requirements, confirmed by regular audits and a transparent issuer structure. This facilitates compliance procedures when working with European and Asian banks.
- USDT has strengthened AML compliance in recent years, but its history of legal disputes and reserve transparency questions can complicate integration into the business processes of companies operating in strictly regulated jurisdictions.
Practical aspects of implementing USDT and USDC in corporate processes
Cases of stablecoin usage in Europe and Asia
Implementing stablecoins into business processes is not just a technological novelty but a strategic tool for managing corporate liquidity and optimizing international transactions.
- In one of COREDO’s projects for a fintech company from the Czech Republic, USDC integration accelerated settlements with European counterparts and reduced currency operation costs.
- For a client from Singapore, the COREDO team implemented a corporate settlement scheme through USDT, ensuring instant transfers between Asian and European branches, minimizing currency risks, and increasing transparency of financial flows.
Risks of blocking and freezing funds, safety recommendations
- USDT is subject to blocking risks at the issuer level and individual blockchains, especially when suspected of AML/KYC violations.
- USDC features a stricter but transparent blocking mechanism, reducing risks for companies complying with compliance.
- Use multiblockchain wallets supporting USDT and USDC.
- Regularly update compliance control procedures.
- Diversify reserves among several stablecoins.
- Apply custodial services with independent audits.
Comparison Table of USDT and USDC for business
| Criteria | USDT (Tether) | USDC (Circle) |
|---|---|---|
| Market Capitalization | Higher | Lower |
| Liquidity | Maximum, top-1 on exchanges | High, but lower than USDT |
| Reserve Transparency | Limited, periodic reports | Regular audits, maximum transparency |
| Regulatory Status | Had issues, compliance strengthening | Full compliance with requirements |
| Blockchains | Ethereum, Tron, BNB Chain, and others | Ethereum, Solana, and others |
| Popularity among Businesses | Maximum | Growing among corporate clients |
| Blocking Risks | Medium | Lower |
| Suitable for | High-liquidity operations, trading | Compliance-critical corporate transactions |
Key conclusions and practical recommendations for entrepreneurs
The choice between USDT and USDC depends on business tasks, geography of operations, and compliance requirements.
- USDT is optimal for companies that value maximum liquidity, transaction speed, and a broad selection of blockchains. This is the solution for high-turnover operations, trading, and markets with less stringent regulations.
- USDC: is the choice for companies where reserve transparency, compliance with AML/KYC, and long-term reliability are critical. It is especially relevant for businesses in the EU and Asia, where financial reporting and compliance requirements are maximal.
- Diversify corporate reserves between USDT and USDC.
- For international settlements with large sums, use USDT but do not neglect risk control tools.
- For integration into banking and fintech solutions in the EU and Asia, prioritize USDC.
- Implement corporate wallets with multiblockchain support and set up custodial services with independent audits.
- Regularly update compliance procedures and monitor regulatory changes in your jurisdiction.
FAQ: Answers to key questions from entrepreneurs about USDT and USDC
How to choose a stablecoin for a company’s international transactions?
What integration technologies for stablecoins are most effective for companies?
How to ensure AML compliance when using USDT?
What are the risks associated with using USDT for corporate settlements?
Why does USDT remain more popular than USDC among entrepreneurs?
How to reduce risks when using stablecoins in international transactions?
What are the long-term consequences for corporate clients when choosing USDT over USDC?