Overview
USDC is a dollar stablecoin: a token designed to always be worth $1. It was launched in 2018 by Circle, a US payments company led by Jeremy Allaire, originally together with Coinbase.
With about $72 billion in circulation in October 2026, USDC is the second-largest stablecoin, holding roughly 24% of the market, according to DeFiLlama. It is especially popular in DeFi, with institutions and in the US and Europe. Although it has fewer coins in circulation than USDT, it often handles a larger share of stablecoin transaction volume.
Circle listed its shares on the New York Stock Exchange in June 2025 (ticker CRCL).
How it works
- Businesses send dollars to Circle and receive new USDC; when they redeem, USDC is destroyed and dollars are returned.
- Circle holds reserves equal to all USDC in circulation: cash in banks and the Circle Reserve Fund, a regulated money-market fund managed by BlackRock that holds short-term US Treasuries.
- Monthly attestations by a major accounting firm confirm the reserves.
USDC runs natively on many blockchains, including Ethereum, Solana, Base, Arbitrum and others. Circle’s Cross-Chain Transfer Protocol moves USDC between chains without wrapped copies.
Regulation
USDC is built to fit regulation:
- In Europe, Circle obtained an electronic-money license in 2024, making USDC compliant with the MiCA rules; several EU exchanges favor it over USDT.
- In the US, the GENIUS Act of July 2025 sets federal rules for stablecoins. USDC’s reserve model already matches the law’s requirements, which take effect in 2027.
Arc: Circle’s own blockchain
In September 2026, Circle launched Arc, a blockchain built for payments, tokenized finance and, in time, payments between AI agents. Fees on Arc are paid in USDC. At launch, validators are approved by Circle; it is considering opening up to proof of stake with an Arc token from 2027. More than 100 institutions, including BlackRock, Visa, Mastercard, BNY and HSBC, are taking part or exploring it.
The USDC token
| USDC at a glance | |
|---|---|
| In circulation (Oct 2026) | about $72 billion |
| Target value | $1.00 |
| Lowest point | about $0.87 (March 2023, briefly) |
| Market cap | about $72 billion (#6) |
| Reserves | Cash and short-term US Treasuries |
Risks
- The 2023 depeg. In March 2023, Circle had $3.3 billion of reserves at Silicon Valley Bank when it failed. USDC briefly fell to about $0.87 until US authorities guaranteed the bank’s deposits. It recovered within days, but the episode showed that USDC depends on the banking system.
- Freezing. Circle can freeze USDC at any address, for example after hacks or court orders.
- No interest for holders. Circle earns the interest on reserves; holders don’t, unless they use other platforms.
- Business risk. Circle’s income depends on interest rates and on sharing revenue with partners like Coinbase.
USDC vs. the competition
| USDC | USDT | PYUSD | |
|---|---|---|---|
| Issuer | Circle (US-listed) | Tether | Paxos for PayPal |
| Market share | ~24% | ~60% | Small |
| Reserves | Cash and T-bills only | T-bills plus BTC, gold, loans | Cash and T-bills |
| EU MiCA compliant | Yes | No | No |
Our verdict
USDC is the most transparent and regulated of the big stablecoins: simple reserves, a public company behind it and approval in both the US and Europe. For many users and institutions, it is the default “safe dollar” on a blockchain, and Arc could extend its reach further.
Still, no stablecoin is risk-free: 2023 showed that a bank failure can shake even USDC, and Circle controls freezes. USDC is a tool for holding and moving dollars, not an investment. Spreading large amounts across more than one stablecoin can reduce risk.
This review is for information only and is not financial advice.