U Card and OTC (C2C) are fundamentally different. When you use a U Card, you are not actually using USDT or USDC but rather fiat currency. Currently, there are about four types of U Cards:

1. The oldest method: when you deposit money into the U Card, there will be a process similar to a transfer, allowing you to convert USDT to USD or other fiat currencies. This is essentially a currency exchange, and this action is mostly accepted by intermediaries, primarily earning the spread.

In this situation, using the U Card or withdrawing is actually unrelated to USDT; it is basically a foreign exchange card, such as the currently most common US dollar card or Hong Kong dollar card.

2. There was a time when certain card segments could allow deposits of USDT or other cryptocurrencies. When spending, there would be an automatic settlement, and it would deduct the equivalent amount in fiat currency. The withdrawal process was the same, reducing the transfer process compared to the first method, but the essence remains the same.

3. Now very rare, the card directly holds USDT or USDC, which can be used directly as USD without a currency exchange process. The recipient also receives USDT, but such cards are almost all non-withdrawable, and these cards have almost disappeared.

4. This type of card is relatively new and has started to see more usage scenarios; it is similar to a credit card. First, you need to deposit cryptocurrency, then a credit limit is given based on a collateralized lending method. Within the credit limit, you can spend and withdraw, but essentially it is still a foreign exchange card.

Thus, it can be seen that the U Card itself is a currency exchange or an OTC process. When you use the U Card, you are essentially using foreign exchange for settlement. Because it is the card's inherent function, it has little to do with the user.

OTC, on the other hand, is a more explicit inflow and outflow of funds, and this method is also prohibited and primarily targeted by the government. #USDT #u卡