Stablecoins are cryptocurrencies with a price that remains constant over time. Stablecoins are backed by collateral and are generally pegged to fiat currency, such as the US dollar. Stablecoins are mostly used on DeFi systems and to store funds within the crypto ecosystem.
There isn’t much of a difference from the standpoint of the average trader, except that USDT has a lot more trading pairings and liquidity than BUSD.
However, there are a few distinctions:
BUSD is a regulated and audited organisation. They guarantee that each BUSD is backed by a physical dollar held in FDIC-insured US institutions.
USDT has suffered security breaches and lawsuits in the past and is not audited. They don’t guarantee that every USDT is backed by a tangible dollar, and the money that does is held in offshore banks.
So, while BUSD is a safer stablecoin, USDT is more useful for traders due to its large daily volume and quantity of trading pairings.