Stablecoin USDC: Types, Fees, and Everything You Need to Know

In the world of cryptocurrencies, where volatility is often extremely high, stablecoins have become a lifeline for investors. Among them, two giants stand out—USDC (USD Coin) and USDT (Tether). As of January 2025, these two digital currencies together account for over 80% of the stablecoin market, with a market capitalization exceeding $100 billion.

In this article, we will explore what USD Coin is, how it works, and why more and more investors are choosing it over the more popular “big brother” USDT. We will analyze their differences in transparency, technology, and regulatory environment to help you determine which stablecoin might better suit your investment needs.

What’s the Difference Between USDC and USDT?

USDT and USDC are stablecoins—a special type of cryptocurrency token designed to maintain a stable value. They are pegged to the value of a stable asset, most often the U.S. dollar, making them less volatile compared to other cryptocurrencies.

There are different types of stablecoins:

• Fiat-backed
• Crypto-backed
• Commodity-backed
• Algorithmic

The primary difference between USDT and USDC lies in their issuers and approaches to collateralization.

• USDC is issued by Circle in partnership with Coinbase, while
• USDT is issued by Tether Limited.

Transparency & Reserves

• USDC is fully backed by U.S. dollars and short-term U.S. Treasury bonds, held in regulated financial institutions in the U.S.
• Circle undergoes regular audits and publishes reports on its reserves.

In contrast, USDT has faced criticism for a lack of transparency regarding its reserves. However, in recent years, Tether has improved its reporting, making reserve data more accessible to the public.

Regulatory Status

A second key difference is their regulatory standing and cooperation with financial authorities.

• USDC actively complies with U.S. regulatory requirements, obtaining licenses in multiple states.
• Circle also collaborates with regulators to develop stablecoin standards.

Meanwhile, USDT has faced regulatory issues, including an $18.5 million fine imposed by the New York Attorney General’s office in 2021 for misleading statements about its reserves.

Types of USDC (ERC20, Sol, Near, Arbitrum, Polygon)

Like many cryptocurrencies, USDC exists on multiple blockchain networks, allowing users to choose the most convenient and cost-effective platform for their needs.

Popular USDC Networks:

• ERC20 (Ethereum): The most widely used version, though Ethereum’s high fees can sometimes be an issue.
• SOL (Solana): Gaining traction due to fast transactions and low fees, popular in DeFi projects.
• Polygon: A great choice for Ethereum users seeking lower fees, widely used in DeFi and GameFi.
• Arbitrum: Offers low fees and Ethereum compatibility, useful for DeFi users.
• NEAR: Less popular but still has a niche, mainly used within the NEAR ecosystem.

How to Create a USDC Wallet?

Creating a USDC wallet is simple with Trustee Plus, which simplifies managing USDC and other cryptocurrencies.

Benefits of Using Trustee Plus for USDC:

• Automatic wallet creation for over 30 digital assets, including USDC.
• Crypto payment card issuance for everyday transactions.
• 0% commission on stablecoin exchanges, transfers, and top-ups.
• User-friendly interface for seamless transactions.

How to Create a USDC Wallet?

1. Download the Trustee Plus app
2. Sign up and complete verification
3. Access your USDC wallet and start using it

How to Buy USD Coin with Euros?

Before buying USDC, follow these steps:

1. Download Trustee Plus
2. Verify your account
3. Fund your balance with a bank card
4. Exchange euros for USDC

The entire process takes just a few minutes!

Conclusion

Now you know what USDC and USDT are and how they function. As leading stablecoins in the crypto market, they play a crucial role in the digital economy, providing the stability and liquidity needed for:

• Crypto exchanges
• DeFi platforms
• International transfers

While both stablecoins are functionally similar, USDC stands out for its transparency and regulatory compliance, making it a more attractive option for investors, especially institutional ones who prioritize security and adherence to financial laws.