Welcome crypto nation to the battle of the stablecoins tonight we're going to see USDC versus USDT
Two heavy hitters with a combined market cap of over 80 billion dollars duking it out in the cage
I'm Kris and with me here as always is Davey Zelaya the Slaya what's your take on tonight's
action Davey? This one could go the full 12 rounds Kris both of these projects have reserves that
run deeper than lake Baikal on a rainy day i don't even know where lake Baikal is but that sounds
seriously deep. Google it amigo, anyway stablecoins – what would we do without them those hugely
liquid safe havens that we can jump into whenever somebody mentions China banning crypto and then
out of again when it turns out that China isn't actually banning crypto and then back in when they
actually are ... What do you reckon Davey do you think that USDC is finally going to knock Tether off of
its peg? Well Tether is definitely more versatile with much wider exchange listings than USDC.
Its long green tentacles have gotten everywhere but both projects are doing a good job of building
out from Ethereum onto other blockchains to create more connections across the space,
reduce network congestion, and allow for lower cost transactions. Yep, USDC is interoperable with
three additional blockchains for now Solana, Stellar and Algorand, but USDT has more with
the addition of Omni, Tron, Bitcoin Cash, EOS liquid network and Kusama next on the list
For multi-chain ease of use and liquidity options, USDT wins hands down. Tether is huge, no doubt about
it. Not only is USDT the most liquid stablecoin, it is also the most traded asset in the crypto nation
even more than bitcoin with consistently higher trading volumes. That's right, there's currently a
circulating supply of 62 billion USDT coins. USDC is a third of that at a meager 23 billion USDT is
killing it as a top three asset. Okay but USDC is pegged one-to-one to actual US dollars which are
held in reserve bank accounts and is subject to regular audits to ensure that it stays this way.
The trust factor is paramount to many – it's less clear as to what assets are backing USDT.
Tether printer goes brrr... but to be serious, Tether has this year released a report with a
full breakdown of the assets that back up the USDT coin. Over 75% of these are liquid cash assets and
the rest are made up of secured loans, bonds and other commodities and other original investments
including digital assets. Well look, I will as much as the next guy use USDT whenever it makes more
sense, especially for a quick trade. But for a long-term hold such as earning yields on a stablecoin
my choice is still with a good old-fashioned and stable USDC. Different strokes for different folks.
You sleep tight with USDC but also know that Circle can and have in fact previously frozen USDC funds
before on request by law enforcement. We definitely know that both USDC and USDT have one thing
in common – they're both heavily centralized with all the drawbacks that come with them.
But USDC definitely has a better reputation and perhaps that's why it was able to score
a partnership with Visa and crypto.com to ensure that payments can be settled in USDC
right across the Visa payment network. So, Tether might have the liquidity right now
but USDC seems to be the favorite of regulators in the US.
Let us know in the comments which is your stablecoin refuge of choice.
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