Stablecoins are cryptocurrencies pegged to the value of the U.S. dollar, providing stability in the crypto market.
Here we summarize the differences and key features of USDT, USDC, and USD1, and explain how to trade them on Binance.
What Are Stablecoins
A stablecoin is a type of cryptocurrency whose value is pegged to a real-world currency, most commonly the U.S. dollar (USD).
Unlike Bitcoin or Ethereum, which are highly volatile, stablecoins are designed to maintain a 1:1 value with the dollar, making them much less volatile.
Investors often use stablecoins to protect their assets during periods of market instability or as a convenient tool for cross-border transfers and moving funds between exchanges.
Major Types of Stablecoins
USDT (Tether)
Issuer: Tether Limited
The oldest and most widely traded stablecoin
Most commonly used across global cryptocurrency exchanges
Has faced transparency concerns in the past but still maintains a dominant market share
USDC (USD Coin)
Issuer: Circle & Coinbase (Centre Consortium)
Complies with U.S. regulations and is highly trusted
Reserves are regularly audited and publicly verified
Preferred by institutional investors due to its transparency and compliance
USD1 (First Digital USD1)
A newly emerging stablecoin
Issued by First Digital Trust, based in Hong Kong
Focuses on regulatory compliance and transparency
Rapidly adopted by major exchanges such as Binance
USDT vs USDC vs USD1: Key Differences
| Category | USDT | USDC | USD1 |
|---|---|---|---|
| Issuer | Tether Limited | Circle & Coinbase | First Digital Trust |
| Market Share | Highest | Steadily increasing | Emerging stablecoin |
| Trust Level | Faced transparency issues in the past | Strong regulatory compliance & publicly audited | Focuses on regulatory compliance and transparency |
| Main Use Cases | Widely used across global exchanges | Preferred by institutional investors and in regulated markets | Gaining traction in new markets, especially in Asia |
| Utility | Unmatched liquidity | Strong legal and regulatory stability | High growth potential |
Utility of Stablecoins
Trading Stability: Helps avoid price volatility in crypto markets.
International Remittance: Enables fast and low-cost cross-border transfers.
Exchange Transfers: Commonly used for moving funds between different exchanges.
DeFi Applications: Widely used for staking, lending, borrowing, and earning interest in decentralized finance platforms.
Binance Sign-Up Benefits
Binance, the world’s leading cryptocurrency exchange, supports USDT, USDC, and USD1.
By using a referral code or the sign-up link below, you can receive various exclusive benefits when creating your Binance account.
Binance Fee Discount Sign-Up Information
Sign-Up Benefits: 20% trading fee discount + up to 600 USDT in bonus coupons
Sign-Up Link: [Join Binance Now – Fee Discount Automatically Applied]
Sign-Up Guide: Easy step-by-step instructions for Binance registration and KYC verification
Spot and Futures Trading Fee Code: 344595968 (enter manually if signing up directly via the app)
FAQ
Q1. Are Stablecoins Safe?
They are generally stable because they are backed by reserves such as U.S. dollars, bonds, and cash-equivalent assets.
However, their safety depends on the issuer’s credibility and regulatory compliance.
Q2. Which Is Better: USDT or USDC?
USDT: Offers dominant trading volume and liquidity, making it ideal for active trading and transfers.
USDC: Known for strong regulatory compliance and transparency, making it more trusted by institutions.
Choose based on your purpose and usage environment.
Q3. Why Is USD1 Gaining Attention?
USD1 is a newly emerging stablecoin rapidly adopted by Binance.
Its focus on regulatory compliance and growth in the Asian market gives it significant potential for expansion.
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Complete Guide to Stablecoins and Their Differences: USDT, USDC, USD1
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