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Beginner7 min read

USDC vs USDT vs DAI

Compare leading stablecoins and pick what fits your needs.

Last updated: February 8, 2026

What are stablecoins?

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to the US dollar. They combine the benefits of cryptocurrency (fast, borderless transactions) with the stability of traditional currency.

Stablecoin comparison

USDCUSDTDAI
IssuerCircle (with Coinbase)Tether LimitedMakerDAO (decentralized)
TypeFiat-backedFiat-backedCrypto-collateralized
Market cap$75+ billion$90+ billion$5+ billion
Pros
  • Fully backed by cash & US Treasuries
  • Monthly attestations by top auditors
  • Regulated and transparent
  • Available on 15+ blockchains
  • Strong institutional adoption
  • Highest liquidity
  • Available on most exchanges
  • Wide adoption globally
  • Lower fees on some platforms
  • Decentralized — no single entity controls it
  • Transparent on-chain
  • Can't be frozen or censored
  • Overcollateralized by crypto assets
Cons
  • Centralized (can be frozen)
  • Requires trust in Circle
  • Regulatory risk
  • History of transparency issues
  • Less regulated
  • Questions about full backing
  • Controversies in the past
  • More complex mechanism
  • Smaller liquidity
  • Vulnerable to crypto market crashes
  • Higher technical knowledge required
Trust & transparencyMonthly attestations, regulatedQuarterly attestations, less transparentOn-chain, fully transparent
LiquidityStrong, growingHighest trading volumeDecent, mostly DeFi
DecentralizationCentralizedCentralizedTruly decentralized
Regulatory complianceMost regulatedSome regulationVaries by jurisdiction
Best for
  • Safety-conscious users
  • Large transactions
  • Institutions
  • US-based users
  • Active trading
  • Maximum liquidity
  • Regions with limited options
  • DeFi users
  • Decentralization advocates
  • Censorship resistance

Many experienced users hold multiple stablecoins to spread risk. There's no single right answer — pick what fits your priorities, or diversify across two or three.

Important reminders

No stablecoin is 100% risk-free • Past stability doesn't guarantee future stability • Stablecoins can temporarily lose their peg during market stress • Don't invest more than you can afford to lose • Consider using multiple stablecoins for large amounts

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Learn more about USDC or explore our other guides.

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Independent guides to USDC and stablecoins.

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