U cards and OTC (C2C) are fundamentally different. When you use a U card, you're not actually using USDT or USDC but fiat currency. Currently, there are roughly four types of U cards: 1. The oldest method: When you deposit money into a U card, there's a process similar to a transfer, where you convert USDT into USD or other fiat currencies. This is essentially a currency exchange, and it's almost always handled by intermediaries who profit from the spread. In this case, using a U card or withdrawing funds has nothing to do with USDT. It's basically a foreign exchange card, like the current USD cards or HKD cards, which are the most common. 2. There was a period when certain cards allowed you to deposit USDT or other cryptocurrencies. During transactions, there would be an automatic settlement, converting it into the corresponding fiat currency. Withdrawals worked the same way. This method eliminated the transfer process from the first type but was essentially the same in nature. 3. Rarely seen nowadays: Cards that directly hold USDT or USDC, which can be used as USD without a currency exchange process. The recipient also receives USDT. However, these cards are almost impossible to withdraw from and are nearly extinct. 4. A newer type of card with increasing use cases. It works similarly to a credit card. You first deposit cryptocurrency, and then you're given a credit limit based on a collateralized loan. Within this credit limit, you can spend or withdraw. But fundamentally, it's still a foreign exchange card. So, you can see that U cards are essentially a currency exchange or OTC process. When you use a U card, you're essentially using foreign exchange for settlement. This is a function of the card itself and has nothing to do with the user. On the other hand, OTC is a more direct way of depositing and withdrawing funds, which is also the primary target of crackdowns in China. Bitget VIP: Lower fees, bigger perks!