Converting Assets from USDT to USDC

Why I’m Converting USDT to USDC

The Key Reason: High Exposure to U.S. Treasuries

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.

Why USDT Raises Concerns

USDT has faced ongoing doubts due to:

• Limited transparency
• Reserves that include commercial paper and other riskier assets
• Regulatory and issuer-related uncertainties

These factors introduce credit and liquidity risk, especially during market stress.

Why USDC Stands Out

The most important strength of USDC is its reserve quality.

• A large portion of USDC reserves is held in short-term U.S. Treasury bonds
• The rest is kept in cash
• Reserves are reported regularly through third-party attestations

U.S. Treasuries are considered one of the safest and most liquid assets in the world, making USDC structurally more resilient.