USDT (Tether) and USDC (USD Coin): Stablecoin Explained
What are Stablecoins?
Stablecoins are cryptocurrencies pegged to the value of a fiat currency, usually the US dollar. They aim to minimize price volatility, providing a stable store of value and medium of exchange.
USDT (Tether)
USDT is the largest stablecoin by market capitalization, issued by Tether Limited.
Key Features:
1. Pegged to USD (1 USDT = 1 USD)
2. Backed by reserves (fiat currencies, bonds, and other assets)
3. Issued on various blockchains (Bitcoin, Ethereum, Tron, etc.)
4. Widely used for trading, lending, and DeFi applications
USDC (USD Coin)
USDC is another popular stablecoin, developed by Circle and Coinbase.
