What is USD Coin (USDC)?
USD Coin (USDC) is a dollar-backed stablecoin issued by the US company Circle and designed to hold a value of one US dollar.
USD Coin was first issued in September 2018 according to Circle, and rather than a volatile asset like Bitcoin it works more like a digital dollar carried on blockchains. USD Coin was originally governed by the Centre consortium founded by Circle and Coinbase, but after Centre was wound down in 2023, Circle took over issuance and governance directly.
USD Coin is built to avoid price swings, so it is widely used as a base currency for crypto trading, a tool for transfers and payments, and a core asset in DeFi.
How does USDC keep its $1 value?
USD Coin keeps its dollar value through reserves. According to Circle's disclosures, reserves of cash and very short-dated US Treasuries match the USDC in circulation, with most of the reserves held in the Circle Reserve Fund managed by BlackRock and custodied at BNY Mellon.
USD Coin issuer Circle publishes its reserve composition every month together with an attestation report from an independent accounting firm. The existence of collateral that can redeem each USDC for a dollar, verified on a regular schedule, is the foundation of trust in USD Coin.
24h Change+0.01%
7d Change-0.01%
Market Cap$69,053,681,211
24h Volume$13,337,215,553
24h High$0.999674
24h Low$0.999431
All-Time High$1.04
What is the difference between USDC and USDT?
USD Coin is the second-largest stablecoin by market capitalization after Tether (USDT) as of September 2026, per CoinGecko. Both are pegged to the dollar, but USD Coin positions regular disclosure and compliance within the US regulatory framework as its main distinction.
Tether (USDT) has faced criticism over the past for relatively opaque reserve reporting, while USD Coin has emphasized monthly attestations and regulatory licensing. As a result, US and European financial institutions and compliance-focused companies and exchanges tend to prefer USD Coin.
What is USDC used for?
USD Coin is issued natively on multiple blockchains, including Ethereum, Solana and Base, and can be used like dollars on each network. Circle's CCTP (Cross-Chain Transfer Protocol) moves USDC between chains by burning tokens on one chain and minting them on another.
USD Coin is mainly used for cross-border transfers, business settlement, DeFi deposits and lending, and as a quote currency on exchanges. Because USD Coin can move dollars outside banking hours at relatively low cost, its use in payments and settlement has been expanding.
How is USDC regulated?
USD Coin issuer Circle listed on the New York Stock Exchange in June 2025 under the ticker CRCL, becoming a public company. In Europe, USD Coin has become a leading stablecoin issued under the EU's Markets in Crypto-Assets (MiCA) regulation.
USD Coin falls under the GENIUS Act, the US stablecoin law signed in July 2025. The law requires one-to-one reserves in cash and short-term Treasuries plus regular disclosure, and it prohibits issuers from paying interest directly to holders. USD Coin's existing structure closely matched these requirements, strengthening its position as a regulated stablecoin, although changes in the detailed implementing rules remain a factor to watch.
What are the risks of USDC?
USD Coin aims for stability, but it is not a risk-free asset. In March 2023, when Silicon Valley Bank (SVB), which held part of the reserves, failed, the market price of USD Coin briefly fell to about $0.87 before returning to around $1.
USD Coin's main risk factors include problems at reserve custodians or at the issuer, regulatory change, and a centralized design that allows specific addresses to be frozen. Holding USD Coin by itself also earns no interest, while issuer Circle's revenue depends heavily on interest earned from the reserves.
This article about USD Coin is for information only and is not investment advice. Always make investment decisions on your own responsibility.
