Stablecoins are designed to stay close to the value of the U.S. dollar, but not all stablecoins are backed in the same way. Recently, I decided to convert assets from USDT to USDC, and the core reason is simple:
USDC is heavily backed by U.S. government bonds.
USDT has faced ongoing doubts due to:
These factors introduce credit and liquidity risk, especially during market stress.
The most important strength of USDC is its reserve quality.
U.S. Treasuries are considered one of the safest and most liquid assets in the world, making USDC structurally more resilient.
