Stablecoin

USD Coin USDC

A US-dollar-pegged stablecoin issued by Circle, fully backed by short-term Treasuries and cash, favored by institutions and DeFi protocols.

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Founded
2018
Founder
Circle and Coinbase (Centre Consortium)
Consensus
Issued on multiple chains
Max Supply
Variable; fully reserve-backed

What USDC is

USDC (USD Coin) is a fully-collateralized US dollar stablecoin issued by Circle, a US-regulated financial services company. Each USDC token represents one US dollar held in reserve, with reserves consisting of cash and short-duration US Treasury securities. Circle publishes monthly attestations of reserve composition by a Big Four accounting firm and is regulated as a money services business in the United States.

USDC was launched in 2018 originally under the Centre Consortium (a joint venture with Coinbase) and is now issued primarily by Circle. It is available natively on multiple chains including Ethereum, Solana, Avalanche, Base, Arbitrum, Polygon, and Stellar, with each chain holding a portion of the total supply. USDC is widely used in DeFi protocols, by institutional traders, and by retail users seeking dollar-denominated stability with a more conservative reserve profile than alternatives.

How it works

Circle mints new USDC when authorized customers wire US dollars to Circle's bank accounts, and burns USDC when customers request redemption back to USD. The mint/burn flow keeps total USDC supply equal to total dollar reserves. Customers can access this primary issuance through Circle Mint (Circle's institutional onboarding service); retail users typically buy and sell USDC on exchanges.

Reserves are held in regulated US financial institutions and short-duration US Treasury securities. Circle publishes monthly attestations of total reserves, and a separate quarterly review of reserve composition. The transparency around USDC reserves is one of the main reasons institutional users prefer it over alternatives with less-disclosed backing.

Use cases

USDC is the preferred stablecoin in DeFi protocols on Ethereum and L2s, particularly in lending markets (Aave, Compound) and decentralized exchanges (Uniswap, Curve). It is heavily used by Coinbase as the default payment rail for institutional services. Many traditional fintech companies (Stripe, Visa, PayPal) integrate USDC for cross-border payments. TerminalFeed accepts USDC on Base for premium API credits.

Tradeoffs and criticism

USDC is more conservative than USDT in reserve management but smaller in total supply and trading volume. The March 2023 Silicon Valley Bank collapse temporarily depegged USDC because Circle held a portion of reserves at SVB; the peg was restored within 48 hours when banking regulators backstopped depositors. The event highlighted that even high-quality reserves carry banking-system risk. USDC also depends on US regulatory tolerance for stablecoins, which remains an evolving question.

Where to track USDC

TerminalFeed accepts USDC for premium API credits. See the stablecoin entry for the broader category and the stablecoin-flows endpoint for issuance data.

Related coins

Frequently asked questions

Who issues USDC?
USDC is issued by Circle, a US-regulated financial services company headquartered in Boston. Circle was originally part of the Centre Consortium with Coinbase but is now the primary issuer.
What are USDC reserves backed by?
USDC reserves consist of cash held at regulated US banks and short-duration US Treasury securities. Reserve composition is published in monthly attestations by a major accounting firm.
Is USDC safer than USDT?
USDC has more conservative reserve management and stronger US regulatory clarity. Whether that makes it safer in absolute terms is contested, but most institutional users prefer USDC for those reasons.
Has USDC ever lost its peg?
Yes, briefly in March 2023 when Silicon Valley Bank failed and Circle had reserves there. USDC traded below $0.90 for about 36 hours before US regulators backstopped SVB depositors and the peg was restored.