Slash supports two stablecoins for funding your account: USDC (USD Coin) and USDT (Tether). Both are designed to maintain a 1:1 peg with the US dollar, but they differ in important ways. This guide explains the differences to help you choose the right option for your business.

Overview

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a traditional currency like the US dollar. At Slash, you can fund your Global USD account using either USDC or USDT, depending on your preferences and regional availability.

Key Differences Between USDC and USDT

Issuer and Backing

USDC: Issued by Circle in partnership with Coinbase through the Centre Consortium. USDC reserves are held in cash and short-term US Treasury securities, with regular third-party attestations published monthly by Grant Thornton LLP.
USDT: Issued by Tether Limited, a company based in Hong Kong. USDT's reserves include cash, cash equivalents, commercial paper, corporate bonds, and other assets. Tether publishes quarterly reserve reports.

Regulatory Standing

USDC: Circle is a licensed money transmitter in the US and operates under regulatory frameworks in multiple jurisdictions. USDC is generally considered to have stronger regulatory compliance and transparency.
USDT: While USDT is the most widely traded stablecoin by volume, it has faced regulatory scrutiny and settlements with authorities including the CFTC and NY Attorney General. Tether Limited is not licensed as a money transmitter in the US.

Geographic Availability

Due to regulatory restrictions, USDT availability varies by region:

USDC: Available for all Slash customers globally.
USDT: Not available for customers with physical addresses in European Union countries (including Ireland, France, Germany, and other EU member states) due to regulatory restrictions.

If you're based in the EU and need stablecoin funding options, USDC is your available choice.

Supported Networks

Both USDC and USDT can be sent to Slash across multiple blockchain networks:

Ethereum (ERC-20)
Solana
Base
Polygon
Tron

Make sure to select the correct network when sending funds to avoid loss of assets.

Which Should You Choose?

For most Slash customers, we recommend USDC because of its stronger regulatory standing, transparency around reserves, and broader availability across all regions we serve. If you're already holding USDT and prefer not to convert, you can use it to fund your account (subject to regional availability).

Need More Help?

If you have questions about stablecoin funding options or need help determining which option is right for your business, contact our support team through the app or at support@slash.fi. For questions about specific regulatory requirements in your jurisdiction, we recommend consulting with a qualified financial advisor.

Understanding USDC and USDT: Stablecoin Options at Slash