USDT vs USDC: what’s the difference and which token is better for transfers

Most people see that both USDT and USDC are dollar-pegged stablecoins, and that’s where the comparison ends. But in practice, the choice affects convenience, fees, and risks. In this article we will examine:

• who issues USDT and USDC, and how regulatory control differs;
• where and why one token is used more often;
• how the choice of network affects the speed and cost of transfers;
• what risks exist: address freezes, reserve-related claims;
• how to save on USDT TRC-20 transfers without holding TRX.

Although both tokens function as stablecoins, they have different origins and management approaches.

USDT (Tether) has been issued by Tether Limited since 2014, and over the years it has become the most widespread stablecoin on the market.

USDC (USD Coin) appeared later, in 2018, issued by Circle in partnership with Coinbase, emphasizing strict regulation and transparency.

These different approaches create the key distinctions between the two projects:

• Reserves and transparency. Circle publishes regular reports and highlights USDC’s regulated model. Tether discloses reserve composition, but the level of detail has historically raised questions; in 2021 the CFTC fined Tether $41 million for misleading claims about full backing.
• Control and compliance. USDC explicitly allows address freezes at the request of law, as stated in its terms of service. That said, Tether in recent years has also increasingly frozen funds in user wallets.
• Multi-chain. Both tokens are available across a number of networks, with USDC claiming native support for 27 blockchains. Tether, meanwhile, is reviewing its support for “legacy” networks in 2025.

USDC is closer to a bank-like, regulator-controlled model, while USDT remains more flexible and familiar for international transfers.

According to official reports and analytics, USDT indeed holds a dominant position among stablecoins:

• The IMF Crypto-Assets Monitor (May 2025) stated that USDT held around 65% of the stablecoin market share, while USDC held about 26%.
• Coindesk’s Stablecoins & CBDCs Report (April 2025) noted that USDT accounted for about 61.9% of stablecoin capitalization, while USDC accounted for 26.0% during the same period.
• According to DefiLlama, circulating supply in 2025 was: USDT — $173 billion, USDC — $73.6 billion.

These numbers show that USDT remains the primary choice in terms of volume and capitalization.

In practice, distribution depends on the region:

• In CIS countries, Turkey, and Asia, USDT P2P transfers are more common. Stablecoins used by freelancers and for intra-network transactions are also predominantly USDT, thanks to developed infrastructure and habit of using TRC-20.
• In the U.S. and on regulated exchanges, USDC is respected for its reporting, compliance, and integrations with banks and financial services.

The statistics confirm: USDT takes the majority of volume, especially in regions with more liberal exchange systems. Choosing between USDT and USDC often comes down to which infrastructure is more convenient for the user — not just technical characteristics.

When choosing a stablecoin, it’s important to consider not just the peg to the dollar, but also the real cost of transactions. In CIS countries, Turkey, and Asia, Tron has become the primary network for settlements, but even here, things are not so simple.

USDT TRC-20 transfers are fast, but fees depend on Bandwidth and Energy resources. If these are insufficient, the network deducts TRX. In practice, USDT transfer fees look like this:

• a simple USDT TRC-20 transfer to a wallet that already holds tokens costs 6.77 TRX ≈ $2.3;
• a transfer to a new, empty address is more expensive — 13.37 TRX ≈ $4.5 at an exchange rate of $0.34.

For one-off transactions these amounts may seem small, but with regular transfers, costs add up quickly. For example, a freelancer sending 10 monthly payments of $500 would see a portion of income lost just to fees.

The difference between USDT and USDC for everyday transfers lies not in the token itself, but in how the user interacts with the Tron network and whether they know how to optimize fees.

At first glance, stablecoins seem equally reliable: the rate is stable, and funds are easily transferable between wallets. But each project has its vulnerabilities, which it’s important to know about in advance.

For USDC, wallet freezes are commonplace. The issuer, Circle, operates under full U.S. regulatory oversight and has the authority to freeze assets upon official request. As early as 2020, Circle froze $100,000, and in 2023, the company froze over $63 million following the Multichain hack. This makes USDC convenient for banks and regulated exchanges but adds risk for regular users: funds can be restricted without their involvement.

With USDT, the situation is somewhat different. The token has historically been criticized for lack of reserve transparency. In 2021, the CFTC fined Tether $41 million for false statements about full backing. Additionally, Tether also freezes funds, though generally only at the request of law enforcement. For instance, in 2023, about $225 million in USDT was frozen as part of an investigation into pig-butchering fraud schemes.

Neither stablecoin is perfect: USDC’s risks are tied to strict regulatory control, while USDT faces longstanding concerns over transparency and selective address freezes. For users, this means that when choosing between USDT and USDC, they should consider not just fees and transfer speed, but also the likelihood of external intervention in their transactions.

Even on Tron, costs can be significant without energy: the network deducts TRX, and holding it in reserve is inconvenient. The solution — renting Tron energy.

The Tron Pool Energy service connects energy to your address:

• you can transfer USDT without holding TRX in balance;
• save up to 65% on costs;
• connection in minutes, 24/7 support;
• compatible with any non-custodial TRC-20 wallets;
• up to 30 wallets per account.

This approach removes the hassle of Bandwidth/Energy and makes USDT TRC-20 transfers convenient for freelancers and businesses.

If the task is everyday international settlements, USDT is more convenient for most transfers, especially via TRC-20. USDC remains a strong option in regulated markets and when working closely with banks. But the decisive factor is not simply “which stablecoin is better for transfers,” but the ability to optimize costs. Renting TRON energy through Tron Pool Energy makes USDT TRC-20 transfers the most cost-effective tool for everyday transactions.