The stablecoin market has crossed $318 billion. But for a European saver, there is only one thing that really matters: which stablecoin is truly reliable for your savings?
The short answer: the safest and most widely used solution. The differences are massive.
In this article, we explain why unflat chose USDC as its core stablecoin, what makes it different from the alternatives, and why EURC, Circle's euro stablecoin, represents the next step for European savers.
Not All Stablecoins Are Created Equal
A stablecoin is a cryptocurrency designed to hold a stable value, typically pegged to a traditional currency like the dollar or the euro. So far, so simple.
The problem is that “stable” does not automatically mean “safe.” Stability depends on what backs that stablecoin: real reserves in a bank, mathematical algorithms, or vague promises.
In May 2022, the crypto world learned this lesson the hard way. UST, an “algorithmic” stablecoin with no real reserves, collapsed in days. Savers lost billions. The message was clear: without real, verifiable collateral, a stablecoin is an experiment, not money.
That is why the choice of stablecoin is not a technical detail. It is the most important decision a savings app can make.
What Makes USDC Different From USDT and Others?
Three stablecoins dominate the market. They look similar, but they work in very different ways.
USDC is the stablecoin we chose. Here is why.
USDC is issued by Circle, with over $60 billion in circulation. Every USDC is backed by real collateral: cash and US Treasuries, held in the Circle Reserve Fund managed by BlackRock. Monthly attestations are public, verified by Deloitte under the standards of the American Institute of Certified Public Accountants.
Circle is regulated by the New York Department of Financial Services (NYDFS), one of the strictest financial regulators in the world. This is not a footnote: it means continuous oversight, reserve requirements, and rigorous compliance standards.
Don't trust, verify: you can check USDC reserves for yourself at any time.
USDT (Tether) is the largest in the world, with over $184 billion in circulation. For years, though, Tether provided limited and unclear information about the composition of its reserves. In 2021, the CFTC (Commodity Futures Trading Commission) fined Tether $41 million for misleading statements about its reserves, and the New York Attorney General reached a settlement over lack of transparency. Tether is now beginning a path toward full audits, but transparency remains a weakness compared to the competition.
DAI is decentralized and technically elegant. It does not depend on a central company. The trade-off? It is complex to understand, has lower liquidity, and is not built for people looking for simplicity.
Why Should a European Saver Choose USDC
There are hundreds of millions of savers in Europe earning close to zero on their bank deposits. The ECB keeps cutting rates, and the gap between what your bank offers and what your money could generate grows wider every day.
unflat was built to close that gap. Your USDC deposits are allocated to Morpho Protocol, an overcollateralized lending market (every loan is backed by collateral worth more than the loan itself) with over $7 billion in deposits, multiple security audits, and zero exploits to date. The result: up to 7% APY (annual percentage yield), variable and market-dependent. Interest accrues every second and withdrawals are available at any time.
This is not a bank account. Deposits are not government-insured. Never deposit money you cannot afford to lose.
That said, the combination of USDC (a transparent, regulated stablecoin) with Morpho (an audited, overcollateralized protocol) represents one of the most robust approaches to generating yield on your digital savings today. And you can verify everything on-chain (directly on the blockchain), at any time. As the story behind unflat explains, our goal is to give you the tools to understand and control, not to ask for blind trust.
EURC: The Euro Stablecoin Built for European Savers
If USDC is our choice today, EURC is the direction we are building toward.
EURC is the euro stablecoin issued by Circle: 1 EURC = 1 euro, with euro reserves held at regulated financial institutions in the European Economic Area. It is the first euro stablecoin fully compliant with MiCA, the European crypto-asset regulation that came into force in 2024.
EURC now holds over 50% of the euro stablecoin market. MiCA led to the delisting of USDT from major European exchanges and the withdrawal of EURT, leaving EURC as the dominant reference. Circle's MiCA license extends across all 27 EU member states: a structural advantage that competitors cannot easily replicate.
Since January 2026, EURC has been spendable at over 40 million stores worldwide through the Ingenico integration via WalletConnect Pay. It is no longer just a trading stablecoin: it is digital money you can spend in the physical world.
For European users on unflat, the shift to EURC will mean something concrete: your euros stay as euros. No more conversion to dollars, no more EUR/USD exchange rate risk. The experience becomes fully euro-native, as it should be for a European saver.
EURC support on unflat will go live when Morpho deposit pool liquidity allows it. We do not activate a feature until we can guarantee the same quality and security we offer with USDC today.
How We Verify Everything (And How You Can Too)
“Don't trust us. Verify.”
This is not a slogan. It is the principle behind everything we build.
Every transaction on unflat is recorded on the Base blockchain, a network built on Ethereum, and verifiable by anyone, at any time. USDC reserves are attested monthly by Deloitte and published by Circle. Morpho Protocol's smart contracts are audited. unflat's technical documentation is public and accessible to everyone.
We are not asking you to believe our words. We are giving you the tools to verify them. For a deeper look, explore our DeFi savings guides.
Conclusion
The choice of stablecoin is not a detail. It is the foundation on which the security of your savings is built.
Today, USDC represents the highest standard of transparency and regulation in the stablecoin world: real reserves, monthly attestations, rigorous oversight. Tomorrow, EURC will complete the picture with a fully euro-native experience, eliminating exchange rate risk and keeping your savings where they belong: in your currency.
We do not promise guaranteed returns. We promise transparency in the foundation we build on.