USDT vs USDC for business payments: which to hold and which to send
Send what your counterparty asks for, on the network they use. If you keep a balance, USDC's monthly attestations are easier to document than Tether's quarterly ones.
By Pavel Skalin, Founder & CEO, Align · Reviewed by the Align compliance team
Updated · 5 min read
The short answer
Send what your counterparty asks for, on the network they use. USDT carries most stablecoin payments, especially in emerging markets and on Tron. USDC is authorized in the EU and publishes monthly attestations, so it's easier to document for an auditor or a bank. Many businesses receive USDT from counterparties, then convert it to USDC or to their operating currency.
How they compare
| USDT (Tether) | USDC (Circle) | |
|---|---|---|
| Supply, 20 Oct 2026 | About $183 billion, 61% of all stablecoins | About $72 billion, 24% |
| Main networks | Tron (about 51%) and Ethereum (about 40%) | Ethereum (about 62%), then Hyperliquid, Solana and Base |
| Issuer | Tether, now based in El Salvador | Circle, listed on the NYSE since June 2025 |
| Reserve reporting | Quarterly attestation by BDO; says KPMG audited its 2025 statements, but hasn't published the audit | Monthly reserve attestations by a Big Four firm; weekly holdings |
| Reserve assets | Mostly Treasury bills and repos, plus precious metals, secured loans, bitcoin and equities | Mostly a government money market fund managed by BlackRock, plus cash at banks |
| EU (MiCA) | Not authorized; EU exchanges restricted it between December 2024 and August 2026 | Authorized e-money token, issued by Circle's French entity |
| US (GENIUS Act) | From 18 July 2028, US platforms can offer it only if Tether qualifies as a foreign issuer; Tether launched a separate US coin, USAT, in January 2026 | Circle received OCC approval for a national trust bank in July 2026, starting with custody; that isn't approval to issue under the Act |
| Payment volume at firms Artemis sampled (2025) | About 85% | Most of the rest |
Reserves and reporting
Both tokens are redeemable for dollars, and both issuers publish reports. The reports aren't the same.
Tether's attestation at 30 June 2026 showed assets of $187.75 billion against liabilities of $183.64 billion, a buffer of $4.11 billion. According to Forbes, the reserves included $114.96 billion of Treasury bills, $25.6 billion of reverse repos, $18.84 billion of precious metals, $13.45 billion of secured loans and $5.80 billion of bitcoin. In August 2026 Tether said KPMG had given an unqualified audit opinion on its 2025 financial statements. It hasn't published the audited statements or KPMG's report.
Circle publishes monthly reserve attestations by a Big Four accounting firm and weekly holdings. Most of the USDC reserve is in the Circle Reserve Fund, a government money market fund registered with the SEC, managed by BlackRock and held at BNY Mellon.
For a finance team, the difference is documentation. Monthly attestations and a reserve fund registered with the SEC are easier to show a board, an auditor or a bank than quarterly attestations and an unpublished audit.
Fees depend on the network
Sending costs vary with network conditions, so treat these as snapshots.
| Network | Token | Approximate cost per transfer, October 2026 |
|---|---|---|
| Tron | USDT | About $2.24 without staked or rented energy; about $1.44 with rented energy |
| Ethereum | USDT, USDC | Under one cent at quiet times; $5 to $15 or more when congested |
| Solana | USDT, USDC | About $0.0005, if the recipient already has a token account |
| Base | USDC | About $0.0007 |
Tron cut its energy price by 60% in August 2025, but it remains the more expensive way to send USDT when you haven't staked TRX. If your counterparties are on Tron, it may still be the only practical choice.
How to choose
- Your counterparties pay in USDT. Accept it, on the network they use. Convert to your operating currency or to USDC when it arrives if you don't want to hold it.
- You operate in or sell into the EU. USDC or EURC are easier to receive, convert and pay out there, because EU providers restricted USDT in 2025.
- You report to a board, auditor or bank. Keep balances you hold for more than a few days in USDC; they're simpler to document.
- You pay US counterparties. Ask first; many US providers work mainly with USDC. From July 2028, US platforms can offer only stablecoins from permitted or qualifying foreign issuers.
- You care about cost. Choose the network first. USDC on Solana or Base is the cheapest common route; USDT on Tron is the most widely accepted in emerging markets.
Freezing
Both issuers can freeze tokens at an address. Tether said in April 2026 that it had frozen more than $4.4 billion in total, working with more than 340 law enforcement agencies in 65 countries. BlockSec counted $1.26 billion of USDT frozen across 4,163 addresses in 2025, most of it on Tron. Circle's terms let it block addresses and freeze USDC to comply with legal orders and sanctions, or where it suspects illegal activity.
For a business, the practical risk is receiving tokens from, or sending them to, an address that is later frozen. Screen counterparties, know who you're paying, and use providers that screen wallets.
How this works with Align
Align supports USDC, USDT and EURC. You can receive USDT on Ethereum, Tron, Solana, Polygon, Arbitrum or Optimism, and USDC on Ethereum, Solana, Base, Polygon, Arbitrum, Optimism or Avalanche, and convert between them and to USD, EUR, GBP or AED. Align is registered with FINTRAC in Canada as a money services business; it isn't a MiCA-authorized crypto-asset service provider.
Sources
- DefiLlama, Stablecoins, Tether and USD Coin (20 October 2026)
- Tether, Q2 2026 attestation, fees and redemption
- Forbes, Tether's buffer halved in a quarter (September 2026)
- Cointelegraph, Tether completes first full audit (August 2026)
- FinanceFeeds, Tether CEO dismisses critics after KPMG issues clean audit opinion
- Circle, Transparency, USDC, Circle Mint and USDC terms
- Business Wire, Circle receives final OCC approval for national trust bank (July 2026)
- CoinDesk, Tether debuts USAT (January 2026)
- Artemis, Stablecoin payments from the ground up (2025)
- Cryptsy, Crypto transfer fees; Etherscan, Gas tracker; Spark, Stablecoin transfer cost comparison
- TradingView/Cryptonews, Tron votes to cut network fees 60%
- Tether, Freeze of more than $344 million in coordination with OFAC (April 2026)
- BlockSec, $1.26 billion of USDT frozen in 2025
- Align docs, Blockchains and stablecoins
Common questions
- Is USDT safe to hold?
- It's the largest stablecoin, at about $183 billion in October 2026, and Tether publishes quarterly reserve attestations by BDO. Its reserves include gold, secured loans and bitcoin alongside Treasury bills, and it hasn't published the KPMG audit of its 2025 statements. Like USDC, it isn't a bank deposit and has no deposit insurance.
- Which network should I use?
- The one your counterparty's wallet or provider supports. Fees differ by network more than by token: in October 2026, sending USDT on Tron cost between about $1.44 and $2.24, while USDC on Solana or Base cost a fraction of a cent.
- Can either issuer freeze my funds?
- Yes. Tether and Circle can both freeze tokens at an address, usually after a request from law enforcement. Tether says it has frozen more than $4.4 billion in total. Circle's terms let it block addresses and freeze USDC to comply with legal orders and sanctions, or where it suspects illegal activity.
- Can my company redeem directly with the issuer?
- Tether redeems for verified customers with a minimum of $100,000 and a fee of the greater of $1,000 or 0.1%. Circle redeems for institutional customers through Circle Mint. Most businesses convert through a provider instead.
This guide is general information, not legal, tax or financial advice. Rules and providers' terms change; check the sources linked above and take advice on your own situation.
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