USDT vs USDC: which stablecoin should you hold?
USDT and USDC are both dollar stablecoins, but they differ in who issues them, how reserves are reported, and where they are most used. A practical comparison.
By Luindy Editorial7 min read
USDT (Tether) and USDC (USD Coin) together account for the vast majority of all stablecoins in circulation. Both aim to be worth exactly one dollar. Both run on Solana as SPL tokens, and both are supported in the Luindy wallet. So which should you hold? The honest answer is that it depends on what you value, and many people hold some of each.
At a glance
| USDT | USDC | |
|---|---|---|
| Issuer | Tether Ltd. | Circle Internet Financial |
| Launched | 2014 | 2018 |
| Reserves | Cash, T-bills, plus some other assets; quarterly attestations | Cash and short-dated T-bills; monthly attestations |
| Regulatory posture | Registered in El Salvador; historically less US-facing | US-regulated, MiCA-compliant in the EU |
| Where it dominates | Emerging markets, Asia, exchange trading | US, DeFi, businesses, payroll |
| Redemption | Direct with issuer, minimum $100,000 | Direct with issuer via Circle account |
Reserves and transparency
Circle publishes monthly reserve reports examined by a Big Four accounting firm, and its reserves are almost entirely cash and short-term US Treasuries held at regulated institutions. Tether publishes quarterly attestations; its reserves are majority T-bills but also include other assets. For people who want the most conservative reserve profile, USDC has the edge. For people who prioritise the deepest liquidity worldwide, USDT is hard to beat.
The de-peg question
Both coins have wobbled. USDC fell to roughly $0.88 in March 2023 when part of its reserves were stuck at a failing bank; it recovered within days once the US government guaranteed deposits. USDT has traded below $1 during several market panics, most notably in 2022, and recovered each time. Neither has failed to honour a redemption. The lesson most experienced holders draw is to diversify across both rather than pick a winner.
On Solana specifically
Both are native SPL tokens on Solana, meaning the issuer mints them directly on the network rather than through a bridge. That matters: native tokens carry issuer redemption rights, bridged tokens carry bridge risk. Transfer fees and speed are identical for both. If someone asks you to receive stablecoins on Solana, either coin works, but check which one they are sending.
Our view
Hold what the people you transact with use. If your income arrives in USDT, holding USDT avoids conversion. If you are paid by a US company, it is probably USDC. For savings you plan to lend, note that Luindy's fixed lending rates differ slightly between the two, reflecting borrower demand.