USDC vs USDT: Issuers, Reserves and Reports Compared

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USDC and USDT are both stablecoins that track the US dollar, issued by two different private companies: USDC by Circle and USDT by Tether. They differ mainly in who issues them, what each company says backs them and how each reports on its reserves. Neither is legal tender in Australia, and we don't say which is better.

The short answer

Circle says USDC is redeemable one for one for US dollars and backed by highly liquid cash and cash-equivalent assets. Tether says its tokens are pegged one to one with a matching fiat currency and backed fully by its reserves.

Those are issuer claims. They don't make either token Australian money or remove the risks of holding a crypto asset. Moneysmart's crypto guidance, updated on 15 October 2026, says crypto assets are not legal tender in Australia and are not widely accepted as payment.

If you're still working out what a stablecoin is, Moneysmart describes it as a marketing term for crypto that aims to keep a stable value relative to an asset or basket of assets. The word describes an aim, not a guarantee.

Side by side

Everything in this table is what each issuer says on its own website, checked on 30 October 2026.

What Circle says about USDC

USDC is issued by Circle Internet Financial, LLC. Circle's USDC terms, last updated 15 October 2026, say it is regulated in the United States as stored value or prepaid access under state money transmission laws. Circle describes USDC as redeemable one for one for US dollars. Circle says the assets backing USDC are held separately from its operating funds.

Circle says most of the reserve is in the Circle Reserve Fund, also called USDXX. Circle describes this as an SEC-registered 2a-7 government money market fund managed by BlackRock. Circle's reserve breakdown lists the rest as bank deposits, short-dated US Treasuries and overnight reverse Treasury repo agreements.

Circle says it discloses reserve holdings weekly. It also says a Big Four accounting firm provides monthly third-party assurance, under AICPA attestation standards, that reserves are greater than USDC in circulation.

Separately, Circle says Deloitte & Touche LLP has audited its financials since fiscal 2022. These are two different things: the monthly work looks at the reserve, while the audit covers Circle's own company accounts.

What Tether says about USDT

USDT is issued by Tether. Tether's transparency page names the issuer as Tether International, S.A. de C.V., and the site's copyright line names Tether Operations, S.A. de C.V. Tether says all its tokens are pegged one to one with a matching fiat currency and backed fully by its reserves.

Tether says information about tokens in circulation is typically published daily. It also says the Tether issuer's assets exceed its liabilities. Tether says it publishes reserves reports each quarter, prepared by its management, and that BDO Italia prepares independent reports on them as at each quarter end. The latest when we checked was as at 30 September 2026. Tether says the reports "are not financial statements". Its reserve includes cash and cash equivalents, corporate bonds, precious metals, bitcoin and public equities. The mix changes, so read the latest report rather than relying on a summary.

What these claims don't tell you

An issuer's statement about its reserve is not a guarantee, and neither coin is covered by any Australian government scheme. A stablecoin is still a crypto asset.

Moneysmart says most crypto assets are high-risk investments and warns that you could lose everything you put in. It also says many crypto providers are not licensed at this time, so you may not be protected if a platform fails or is hacked. Read how to check a crypto exchange before you hold either coin on a platform.

Storage adds another concern. Moneysmart says a wallet's private key is the secret code that lets you access your tokens. If you lose it, you usually lose the crypto. A software wallet can be held by you or by a trading platform on your behalf.

Moneysmart says hardware wallets store private keys on a secure device not connected to the internet, which can make it harder for hackers to reach. Read more about hot and cold wallets.

Moneysmart also identifies the risk of sending crypto to a wrong address and says stolen crypto offers little hope of recovery. Those risks are the same whichever coin you hold.

How ASIC's guidance may apply

ASIC's INFO 225, updated in October 2025, includes an example relevant to stablecoins. Example 18 describes a non-interest-bearing stablecoin issued at par, redeemable on demand at par, backed by high-quality liquid assets and bank deposits, and used for payments.

ASIC says that example is likely to be a non-cash payment facility, which is a financial product. According to ASIC, linking it to Australian dollars or US dollars does not change that assessment. This describes ASIC's example; it does not establish how ASIC treats either USDC or USDT.

The ASIC Corporations (Stablecoin and Wrapped Token Relief) Instrument 2025/867 gives distributors of eligible stablecoins and wrapped tokens class relief from needing an AFS licence, market licence or CS facility licence. Not every coin or distributor qualifies.

Moneysmart says new laws for digital asset platforms and tokenised custody platforms commence on 8 April 2027. Read ASIC's information on the digital asset platform law.

Tax

The ATO says crypto assets are not a form of money for tax purposes. In its guidance updated on 19 August 2026, the ATO says there are no special tax rules for crypto assets: treatment depends on how you acquire, hold and dispose of them.

The ATO says each crypto asset you hold is a separate asset for tax, even when assets share a wallet. For investors, USDC and USDT are separate CGT assets, and swapping one for the other is a CGT event. Both tracking the US dollar doesn't make them the same asset for tax.

The ATO says businesses trading crypto may need to treat it as trading stock or ordinary income. See crypto tax in Australia for general information, and speak to a registered tax agent about your circumstances.

Frequently asked questions

Is USDC or USDT legal tender in Australia?

Neither is legal tender in Australia. Moneysmart says crypto assets, even Australian dollar stablecoins, are not legal tender and are not widely accepted as payment.

Does USDC mean Australian dollars?

No. Circle says USDC is redeemable one for one for US dollars. Moneysmart's examples of Australian dollar stablecoins are AUDM, AUDF and AUDD.

How often does Tether report on its reserves?

Tether says it publishes reserves reports quarterly, with independent reports from BDO Italia, and token circulation figures typically daily. Tether says the reserves reports are not financial statements.

Does Circle say USDC has reserve checks?

Circle says a Big Four accounting firm provides monthly third-party assurance about reserves under AICPA attestation standards. Circle separately says Deloitte & Touche LLP has audited its financials since fiscal 2022.

Is swapping USDT for USDC a tax event?

The ATO says each crypto asset is a separate asset, and swapping one crypto asset for another is a CGT event for investors. Speak to a registered tax agent about your own tax treatment.