USDT vs USDC: Reserves, Regulation and Risk Compared (2026)
Last Updated: September 15, 2026
USDT vs USDC is a trade-off between reach and reporting. On September 15, 2026, Tether's USDT had $183.3 billion in circulation against USDC's $74.1 billion, according to DefiLlama. Circle publishes USDC reserve reports monthly and holds an EU e-money license, while Tether reports quarterly and held $4.11 billion of excess reserves on June 30, 2026.
Both tokens are designed to trade at $1 and to be redeemable for dollars through their issuers, and both dominate crypto markets: together they made up 82.6% of the $311.7 billion supply of USD-pegged stablecoins tracked by DefiLlama. The differences are in what backs them, who supervises the issuer, how redemption works and what happened when markets tested the peg. USDT, issued by Tether International in El Salvador, holds a broader mix of assets, including gold, bitcoin and secured loans. USDC, issued by Circle, keeps almost all reserves in a government money market fund and bank cash. This guide compares the two on eleven criteria with figures from each issuer's latest report. Holding either token on an exchange adds a second layer of custody, covered in our custodial vs non-custodial wallets guide. To buy either one, compare on-ramps in our best place to buy crypto guide; EVEDEX, a perp DEX, uses USDT as margin.
USDT vs USDC: Side-by-Side Comparison
| Criterion | USDT (Tether) | USDC (Circle) |
|---|---|---|
| Circulating supply, September 15, 2026 | $183.3 billion, 58.8% of all USD-pegged stablecoins tracked by DefiLlama | $74.1 billion, 23.8% of all USD-pegged stablecoins tracked by DefiLlama |
| Issuer | Tether International, S.A. de C.V., an El Salvador company registered with FinCEN as a money services business | Circle Internet Financial, LLC and Circle Internet Financial Europe SAS; parent Circle trades on the NYSE as CRCL |
| Reserve reporting | Quarterly assurance report by BDO Advisory Services in Milan, latest as of June 30, 2026 | Monthly reserve report, latest covering July 8 and July 31, 2026; Deloitte audits Circle's financials |
| Reserve composition | $187.75B: $114.96B T-bills, $25.62B reverse repo, $18.84B precious metals, $13.45B secured loans, $5.80B bitcoin | $71.90B: $60.72B in the BlackRock-managed Circle Reserve Fund, $10.61B bank cash, $0.50B T-bills |
| Reserves above tokens issued | $4.11 billion of excess reserves at June 30, 2026, down from $6.34 billion at the end of 2025 | About $77.6 million above 71.83 billion USDC in circulation at July 31, 2026 |
| Largest networks | Tron holds 50.5% of supply and Ethereum 40.1%, per DefiLlama | Ethereum holds 63.4%, Solana 9.7% and Hyperliquid L1 9.2%, per DefiLlama |
| Regulatory status | No Tether entity in ESMA's MiCA e-money token register; US token USA₮ launched January 27, 2026, via Anchorage Digital Bank | Circle Internet Financial Europe SAS authorized as an e-money institution by France's ACPR on July 1, 2024 |
| Freeze powers | Terms let Tether freeze tokens "where Tether, in its sole discretion, determines it is prudent" | Terms let Circle block USDC addresses it links to illegal activity or breaches of its terms |
| Direct redemption | Verified customers only: $100,000 minimum, fee of $1,000 or 0.1%, whichever is greater, plus a $150 verification fee | Circle Mint business customers: basic redemption free within two business days, faster standard redemption for a nominal fee |
| Worked example: redeeming $250,000 | $1,000 redemption fee plus $150 verification, $1,150 in total, or 0.46% | $0 with basic redemption for an approved Circle Mint account; retail holders sell on an exchange instead |
| Stress on record | May 11–12, 2022: USD₮ deviated from $1 on a few exchanges while Tether processed $7 billion of redemptions | March 2023: $3.3 billion stuck at Silicon Valley Bank; USDC traded as low as 86 cents |
Data as of September 15, 2026. Supply and networks: DefiLlama stablecoins API. Tether reserves: BDO assurance report as of June 30, 2026; fees: Tether. USDC reserves: Circle July 2026 report and Circle transparency page; redemption: Circle 10-K. Regulation: ESMA register and Tether USA₮ announcement. Depegs: Tether, May 16, 2022, Circle and Federal Reserve note.
What Backs Each Token
Tether's June 30, 2026 report lists $187.75 billion of assets against $183.64 billion of liabilities, almost all of them tokens in circulation. Cash equivalents and short-term deposits make up $140.64 billion, or 74.9% of assets, led by $114.96 billion of US Treasury bills and $25.62 billion of overnight and term reverse repurchase agreements. The remaining quarter carries more price and credit risk: $18.84 billion of precious metals, $13.45 billion of secured loans, $5.80 billion of bitcoin, $3.76 billion of public equities and $5.24 billion of other investments. That mix produced the $4.11 billion cushion above liabilities, which was $6.34 billion at the end of 2025. A fall in gold or bitcoin prices shrinks the cushion directly.
Circle's structure is narrower. At July 31, 2026, $60.72 billion of the $71.90 billion reserve sat in the Circle Reserve Fund, a government money market fund under Rule 2a-7 that Circle's transparency page says is managed by BlackRock. Inside the fund, $52.72 billion was in US Treasury repurchase agreements and $7.18 billion in Treasury securities maturing by October 15, 2026. Another $10.61 billion was cash at regulated financial institutions. The margin above circulating USDC was thin, about $77.6 million, because the model aims to match reserves closely to tokens rather than to build a large buffer.
Regulation, Freezing and Legal Claims
Rules for dollar stablecoins tightened on both sides of the Atlantic. In the United States, the GENIUS Act, Public Law 119-27, was approved on July 18, 2025. It requires permitted issuers to "maintain identifiable reserves backing the outstanding payment stablecoins" on "an at least 1 to 1 basis" and takes effect 18 months after enactment or 120 days after final regulations, whichever comes first. Tether's answer for the US market is a separate token: USA₮, launched on January 27, 2026, with Anchorage Digital Bank, N.A. as issuer.
In the European Union, MiCA treats dollar stablecoins as e-money tokens. ESMA's register lists Circle Internet Financial Europe SAS as an e-money institution authorized by France's ACPR on July 1, 2024; no Tether entity appears in it.
Both issuers can stop tokens from moving. Tether's terms allow it to freeze tokens where it "determines it is prudent," and Circle's terms, updated December 12, 2025, let it "block" certain USDC addresses. Holding either token therefore means trusting an issuer's compliance decisions. The legal claim behind the token matters too: Circle's 10-K warns that in a bankruptcy, holders "could be treated as general unsecured creditors of Circle." If you hold stablecoins on an exchange rather than in your own wallet, a second layer of custody applies, as the guide to custodial vs non-custodial wallets explains.
Worked Example: Redemption Costs and Depeg Losses
For large holders, direct redemption sets the floor under the price. Redeeming $250,000 of USDT with Tether costs the greater of $1,000 or 0.1%, so $1,000, plus a $150 verification fee: $1,150 in total, or 0.46%. The same amount through Circle Mint's basic redemption is free for an approved business account. Anyone below Tether's $100,000 minimum, or without a Circle Mint account, exits through an exchange and pays trading fees and the spread instead.
Depegs show why that access matters. When $3.3 billion of USDC reserves, about 8% of the total, was caught at Silicon Valley Bank in March 2023, USDC fell to 86 cents at its trough, according to a Federal Reserve note. A holder who panic-sold $10,000 at that price would have received $8,600, a $1,400 loss, shortly before Circle confirmed the deposit would be fully available and the peg returned. Tether faced its test in May 2022, after the collapse of Terra's UST: USD₮ traded below $1 on a few exchanges while Tether processed $7 billion of redemptions from May 11. In both cases, holders who could redeem directly were protected; holders who sold in thin markets took the loss.
How to Choose Between USDT and USDC
- Match the network and venue. USDT dominates on Tron, while USDC leads on Ethereum, Solana and Hyperliquid L1; pick the token your exchange or app supports on the network you use.
- Decide how much reserve risk you accept. USDT's reserve includes metals, bitcoin and secured loans alongside Treasuries; USDC's is almost entirely Treasuries, repo and bank cash.
- Check local rules. In the EU, USDC's issuer holds an e-money authorization under MiCA; Tether's USDT does not appear in ESMA's register.
- Consider how you would exit. Direct redemption favors large, verified holders; smaller holders depend on exchange liquidity.
- Split large balances. Holding both tokens, in wallets you control, reduces exposure to any single issuer's problems.
To acquire either token, the guide to the best place to buy crypto compares on-ramps.
USDT on EVEDEX
EVEDEX uses USDT, not USDC, as margin for all 52 of its perpetual pairs, so the USDT side of this comparison is the one that applies to its traders. The minimum deposit is 6 USDT, each deposit passes an AML check screening, and there is no traditional KYC. Orders are matched off-chain and settled on-chain on Arbitrum L2. Among its five US stock perpetuals is CRCL, which tracks the shares of USDC's issuer, Circle, rather than the stablecoin itself. The limits are specific: no spot market to swap between USDT and USDC, no options, and the platform is built for leveraged trading rather than for holding cash. The perp DEX page explains the model. Perpetual futures carry a high risk of loss.
