Stablecoins are becoming a popular means of international transactions. They offer the benefits of blockchain technology while maintaining price stability. Among them, USD Coin (USDC) has gained significant traction. However, how does it compare to other stablecoins?

This article explores the differences between USDC and other stablecoins to determine what’s best for global transactions.

We will examine USDC’s strengths and weaknesses relative to other major stablecoins such as Tether (USDT), Binance USD (BUSD), and Dai (DAI) to determine the best choice for global transactions. First, let’s understand what stablecoins are.

Understanding stablecoins

A stablecoin is a cryptocurrency with a value pegged to a reference asset. The value of a stablecoin is usually pegged to traditional assets like a commodity (e.g. gold), fiat money (e.g. US dollars, Euro) or another cryptocurrency (e.g. ETH). Backing a stablecoin with a stable asset means the value of the stablecoin is not volatile like other cryptocurrencies.

Using USDC for global transactions

USD Coin (USDC) is a fully backed stablecoin issued by Circle and Coinbase under the Centre Consortium. It is pegged 1:1 to the US dollar (USD) and undergoes regular audits.

USDC is backed by cash and short-term US Treasury bonds. This makes it one of the most transparent stablecoins. It operates on multiple blockchains, including Ethereum, Solana, and Algorand, ensuring fast and flexible transactions.

Pros of USDC for global transactions

Here are the benefits of using USDC for international transactions.

• Regulatory compliance: USDC adheres to strict financial regulations, making it a trusted option for businesses and institutions.
• Transparency: Regular third-party audits confirm its full backing, reducing risks of depegging.
• Fast and efficient: With multi-chain support, USDC enables low-cost, high-speed transfers across borders.
• Integration with financial institutions: Major banks and fintech companies are adopting USDC, increasing its accessibility for mainstream transactions.

Comparing USDC with other stablecoins

Let’s compare USDC with other popular stablecoins like USDT, DAI and BUSD.

USDT (Tether)

USDT is the most widely used stablecoin. It has higher trading volumes than USDC. It is commonly used for crypto trading and liquidity pools.

Pros:

• Its higher liquidity makes it preferable for traders and exchanges.
• It is available on numerous blockchains, ensuring wide usability.

Cons:

• There are controversies surrounding its reserves and a lack of transparent audits.
• Regulatory scrutiny raises concerns over its long-term stability.

BUSD (Binance USD)

Paxos and Binance issue BUSD. It is another regulated stablecoin backed 1:1 by US dollars.

Pros:

• Highly regulated and approved by the New York State Department of Financial Services (NYDFS).
• Strong integration with Binance’s ecosystem, making it ideal for trading and DeFi applications.

Cons:

• It has limited adoption outside of Binance-affiliated platforms.
• Regulatory concerns led to Binance ceasing new issuance of BUSD in 2023.

DAI

DAI is a decentralised stablecoin issued by MakerDAO. The stablecoin is backed by a mix of cryptocurrencies rather than fiat reserves.

Pros:

• It is decentralised and resistant to censorship.
• Users can generate DAI by collateralising crypto assets.

Cons:

• Collateralisation can make DAI more volatile than fully fiat-backed stablecoins.
• Less liquidity compared to USDT and USDC.

What’s the best stablecoin for global transactions?

Your choice of stablecoin should depend on your priorities and planned usage. For global transactions, the ideal stablecoin must offer reliability, liquidity, regulatory compliance, and cost efficiency.

USDC is popular for transparency and regulatory compliance. However, USDT has a larger trading volume and liquidity.  DAI, on the other end, edges other stablecoins in decentralisation.

USDC is the best option for businesses and individuals seeking a stable, regulated, and widely accepted stablecoin for global transactions. USDC’s transparency and institutional support make it a more secure choice for large-scale and cross-border payments.

How to send USDC payments using Grey

Transacting with USDC is much easier with reliable global payment platforms like Grey. In case you missed the announcement, Grey now allows users to receive USDC payments and convert to USD.

Here is how to get started.

First, create a Grey account

Go to the Grey website or download the mobile app. Register for an account and complete the required identity verification process.

Next, choose “Send via crypto”

Access the “Send money” section and select “Send via crypto” to start your USDC transaction.

Then, complete your USDC transfer

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Ensure you have USDC in your wallet, input the amount you wish to send, and proceed with the transfer.

Grey will request a two-factor authentication (2FA) code for security purposes before finalising your transaction.

Read also: How to receive and convert foreign currencies to USDC

Fast and secure USDC payments with Grey

Selecting the best stablecoin for global transactions depends on the user’s needs. However, USDC remains one of the most reliable, swift and secure means for global transactions.

Grey simplifies sending and receiving USDC payments, making cross-border transactions quick and secure. Whether you need to pay vendors, accept client payments, or send money internationally, Grey offers a low-cost and efficient solution.

Sign up now and enjoy hassle-free USDC transfers with Grey.