What Is a Stablecoin? USDT vs USDC, Types and Risks

Updated: 2026-10-28 · Türkçe

A stablecoin is a cryptocurrency whose price is kept pegged to an asset — usually 1 US dollar. It is used as a trading pair, for transfers and payments; most of the dollar liquidity in crypto sits in stablecoins. Below are today's largest stablecoins, followed by the types, USDT vs USDC and the risks.

Largest stablecoins today (total $302.0B)

StablecoinSupplyShare30dvs $1
Tether (USDT)$180.8B59.9%−1.5%−0.11%
USD Coin (USDC)$71.34B23.6%−4.6%−0.06%
Sky Dollar (USDS)$6.60B2.2%0.0%−0.02%
Dai (DAI)$4.74B1.6%−0.9%−0.04%
Ethena USDe (USDe)$4.53B1.5%−7.6%−0.06%
World Liberty Financial USD (USD1)$3.90B1.3%−11.9%−0.11%
Global Dollar (USDG)$3.07B1.0%−3.1%−0.02%
PayPal USD (PYUSD)$2.97B1.0%+10.5%−0.02%

All stablecoins, chains and 1-year chart → Data: DefiLlama

How does a stablecoin stay at $1?

The common method is reserves: the issuer states it holds cash and short-term government bills for each token and lets large users redeem 1 token for 1 dollar. If price drifts from $1, minting and redemption (arbitrage) push it back.

Types of stablecoins

There are three main groups by peg mechanism, with different risks.

TypeExamplesHow it works
Fiat-backedUSDT, USDC, PYUSD, FDUSDCentral issuer holds bank deposits and short-term bills; redemption through the issuer
Crypto-collateralizedDAI, USDSOver-collateralized crypto vaults in smart contracts; vaults are liquidated if collateral falls
Synthetic / hedgedUSDeCrypto collateral plus an equal short futures position; yield comes from funding

USDT vs USDC

Tether issues USDT, Circle issues USDC; both are fiat-backed. USDT is the largest by supply and widely used for transfers on Tron; USDC is more common on Ethereum, Solana and Base and US-based platforms. Issuers publish reserve reports on their own sites; no judgment is made here about which is safer.

Stablecoin risks

A stablecoin is not a risk-free dollar: issuer risk, depeg risk, chain and smart-contract risk and regulatory risk all apply. In March 2023 USDC briefly traded well below $1 during the failure of a bank holding part of its reserves; in May 2022 the algorithmic UST collapsed entirely. Educational only, not investment advice.

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Frequently asked questions

What is USDT?

A stablecoin issued by Tether, kept pegged to 1 US dollar. It is the largest stablecoin by supply and circulates on Tron, Ethereum and many other chains.

Are stablecoins safe?

Low risk but not zero: issuer reserves and redemption, depeg, smart-contract and regulatory risks apply. Large stablecoins have depegged temporarily or permanently in the past.

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