Stablecoin basics: USDC, USDT, EURC — what they are, who issues them
Three stablecoins dominate on-chain payments in Europe. All three claim 1:1 fiat backing, but they differ in reserves, regulation, and real-world redeemability.
A stablecoin is a crypto-asset designed to maintain a stable value against a reference asset — usually a fiat currency. USDC (US Dollar Coin), USDT (Tether), and EURC (Euro Coin) between them account for over 90% of stablecoin volume in European flows. All three claim 1:1 backing, but the quality of that backing and the legal recourse available to you differ meaningfully.
USDC
Issued by Circle, a US company regulated under multiple state money-transmitter licences and, as of 2024, holding an EU EMI licence. Reserves are 100% cash + short-term US Treasuries, audited monthly, reports public. Redemption is possible for qualified institutional holders directly from Circle; retail typically redeems via supported exchanges.
USDT
Issued by Tether Operations Limited. Historically opaque about reserves; now publishes quarterly attestations (not full audits) showing a mix of Treasuries, cash, corporate paper, loans, and other assets. The largest stablecoin by volume by a wide margin. Not currently MiCA-compliant for use as a means of payment in large volumes within the EU under the 2024 ART rules.
EURC
Circle's euro-denominated stablecoin. Issued under the same framework as USDC, now specifically authorised under MiCA for EU use. Smaller supply than its dollar cousin but the natural choice for euro-denominated on-chain payments and treasury operations within Europe.
What MiCA changed
Since mid-2024, EU-licensed stablecoin issuers must hold reserves in segregated, liquid assets and must honour 1:1 redemption on demand. Non-licensed stablecoins (USDT at time of writing) face transfer-volume caps when used as a means of payment in the EU — a soft, administrative cap rather than an outright ban.
Practical rules
For euro-denominated on-chain transactions in the EU: EURC. For dollar-denominated: USDC if available on your exchange, USDT if you need deeper liquidity. Always check which chain the stablecoin was issued on (ERC-20, Solana, Tron) — same stablecoin, different chains behave differently for transfers and fees.