USDT or USDC: what are the differences for crypto payments in 2026?

Short answer: USDT and USDC are two stablecoins pegged to the dollar, but only USDC complies with the European MiCA regulation. To pay in crypto in Europe, you therefore need USDC (or EURC in euros). If you hold USDT, you can swap it for USDC in one minute from your wallet.

What is a stablecoin?

A stablecoin is a cryptocurrency whose value is backed by a conventional currency, most often the dollar or the euro. It combines the speed of the blockchain with the stability of a currency: it is the asset best suited to everyday payments.

USDT (Tether) in brief

• Issuer: Tether.
• Reserves: made up of cash, US Treasury bills and other assets. Their transparency is regularly questioned.
• Status in Europe: not MiCA compliant, lacking an e-money issuer authorization. Regulated providers can no longer offer it to their European customers.

USDC (Circle) in brief

• Issuer: Circle, which also issues EURC.
• Reserves: cash and short-term US Treasury bills, with monthly attestations published by an independent firm.
• Status in Europe: MiCA compliant. Circle holds an e-money issuer authorization obtained in France.

USDT vs USDC comparison

• Peg: US dollar for both.
• Reserve transparency: monthly attestations for USDC, more debated for USDT.
• MiCA compliance: yes for USDC, no for USDT.
• Payment at regulated European merchants: possible in USDC, impossible in USDT.

How to swap USDT for USDC in 1 minute (simplified DeFi)

The Lyzi swap is a simplified decentralized finance (DeFi) tool: the exchange runs directly from your wallet, on the blockchain, with no account to open and without handing your funds to an intermediary. The LI.FI aggregator compares the available routes to offer you the best rate.

1. Open pay.lyzi.io/otc-swap and connect your wallet (MetaMask, Rabby, Trust Wallet, Phantom…).
2. In "From", choose USDT and the network where your USDT is held.
3. In "To", choose USDC (or EURC if you prefer the euro).
4. Enter the amount: the rate, the swap fees and the network fees are displayed before validation.
5. Confirm in your wallet: your USDC arrives in the same wallet, ready to be spent.

Multi-chain, from Robinhood Chain to Ethereum. The swap covers dozens of networks: Ethereum, Arbitrum, Base, Polygon, OP Mainnet, Avalanche, BSC, Robinhood Chain, HyperEVM, Monad, Unichain, Sonic, Linea, Scroll, zkSync, Mantle, Celo, Gnosis, Cronos, World Chain and many more. You can even change network during the exchange, for example from USDT on BSC to USDC on Polygon.

Important: this swap takes place outside the regulated payment flow. You remain in full control of your funds and responsible for your transactions: always check the network and the amount before confirming.

→ Swap my USDT for USDC now

What about euros? EURC, EURCV and EURE

To pay in euros with no exchange risk, the regulated euro stablecoins are EURC (Circle), EURCV (Société Générale-FORGE) and EURE (Monerium). The Lyzi swap also lets you go from USDT to EURC.

Where to pay in USDC afterwards?

At merchants equipped with the Lyzi payment solution, in store on their payment terminal or online. You scan the QR code with your phone's camera, choose USDC and send the exact amount. Confirmation takes about 2 minutes.

→ Pay with USDT in 2026: the guide · Pay in USDC with Lyzi

Frequently asked questions

Is USDT banned in Europe?

Holding USDT is not banned, but regulated providers can no longer offer it for payment or exchange in Europe since MiCA. Learn more.

How do I convert USDT to USDC?

Through a decentralized (DeFi) swap, for example on pay.lyzi.io/otc-swap: connect your wallet, choose USDT to USDC, confirm. The exchange takes place outside the regulated payment flow.

Which stablecoin should I choose to pay in Europe?

USDC for the dollar, EURC, EURCV or EURE for the euro. All are accepted by Lyzi.

Read also: Stablecoin payments at merchants · Lyzi FAQ