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What are the main differences between USDC and USDT? Why not directly anchor with USDT?

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USDT, the world's first stable coin, was issued by Tether in 2014. Tether was promising to deposit one dollar in Tether's bank account for each USDT issued in order to guarantee a 1:1 ratio. However, in the past four years, it received strong criticism for some of its abuse, including unclear audit, centralization and suspected oversupply.

USDC is a stable coin issued on Poloniex Exchange by CENTER, a wholly-owned subsidiary of Circle. Circle is a startup company under the Goldman Sachs Group. Its investors include Bitmain, Goldman Sachs Group, IDG, CICC, CEB and Baidu. It is converted to US dollar at 1:1. USDC is ERC-20 token on the ETH network. The company's operations are transparent and consistent with the global government regulatory framework. In addition to Poloniex, which was purchased by Circle before, exchanges such as OKCoin, KuCoin, Digifinex, Coinplug, XDAEX and CoinEx, as well as many wallet applications have promised to support USDC.

In comparison, USDC has better performance than USDT in terms of regulatory compliance, accounting transparency, credit, development potential and technical docking ability, making it more stable and safer. This is also an important factor for us to select USDC as FOD anchoring target.

 

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