Overview

USDC (USD Coin) is a cryptocurrency stablecoin issued by Circle Internet Group. It is pegged to the United States dollar, and is distinct from a central bank digital currency (CBDC).

Usage

USDC operates as an Ethereum ERC-20 token and is also available on several other blockchain platforms, such as Base and Polygon. Visa initiated a pilot program in 2023 to send USDC via the Solana blockchain to payment firms Worldpay and Nuvei, who could then transfer payment to merchants.

Assets and reserves

As of 2020, USDC reserves were regularly attested (but not audited) by Grant Thornton LLP.

Until mid-2021, Circle stated that each USDC was backed by either one U.S. dollar in reserve or by other "approved investments", though the specifics of these investments were not disclosed. In June 2021, Circle updated its website wording from "backed by US dollars" to "backed by fully reserved assets".

In January 2023, Circle said it had engaged Deloitte as its auditor for USDC reserve reporting.

History

Circle Internet Group announced USDC on May 15, 2018, and it was subsequently launched in September of the same year by Centre, a consortium formed through a joint venture between Circle and Coinbase.

On March 29, 2021, Visa announced its support for USDC, enabling the cryptocurrency to be used for settling transactions within its payment network.

In July 2022, Circle reported that the circulation of USDC had reached $55 billion.