USD Coin (USDC)
USDC is a dollar token run by a licensed company that publishes its reserves weekly. Its biggest test came from an ordinary bank failure.
On this page
- USDC launched on 26 September 2018 through the CENTRE consortium, with Circle as its first commercial issuer.[1]
- Circle says USDC is backed 100% by cash and cash-equivalent assets and redeemable 1:1 for US dollars.[3]
- Only Circle Mint account holders can mint and redeem directly; Circle Mint is not available to individuals or small businesses.[3]
- In March 2023, $3.3 billion of USDC reserves were stuck at Silicon Valley Bank and USDC traded as low as 86 cents.[7][9]
- Circle can block addresses and freeze USDC it links to illegal activity, and USDC is not legal tender or deposit-insured.[5]
What is USD Coin (USDC) and who issues it?
USD Coin, ticker USDC, is a stablecoin designed to stay worth one US dollar. Circle announced its launch on 26 September 2018, saying USDC was launched by CENTRE, an open source consortium, with Circle as the first commercial issuer.[1] A month later Circle described CENTRE as a joint venture it co-founded with Coinbase in 2018 to set standards for fiat stablecoins.[2]
Today the issuer named in the USDC terms is Circle Internet Financial, LLC. Since 1 July 2024, Circle Internet Financial Europe SAS has acted as a second issuer for the European Economic Area.[5] Circle says Circle Internet Financial, LLC is licensed as a money transmitter by the New York State Department of Financial Services.[3]
For the general idea behind dollar tokens, read what is a stablecoin. This page is a fact sheet on USDC itself.
How does USDC work?
USDC is a token on public blockchains. Circle says it is natively supported on 38 blockchain networks, as of 16 September 2026.[3] Like other issuer-run stablecoins, it is not decentralized: Circle may block USDC addresses and freeze the associated USDC if it determines they may be linked to illegal activity.[5]
Two markets hold the price near $1. In the primary market, approved customers create and redeem tokens with Circle; in the secondary market, everyone else trades on exchanges. Federal Reserve economists explain that arbitrage between the two supports the peg, and their 2022 data counted 88,341 unique primary-market participants for USDC.[8]
| Feature | USDC rule | What it means for you |
|---|---|---|
| Who can redeem with Circle | Circle Mint account holders in good standing | Individuals usually exit by selling on an exchange |
| Fee to tokenize dollars | Circle charges none | Exchanges and wallets may still charge their own fees |
| Issuer controls | Can block addresses and freeze USDC | A token in your wallet can be frozen |
| Legal status | Not legal tender; not deposit-insured in a Mint account | It is a claim on Circle, not a bank deposit |
Table source: the USDC terms.[5]
How are new USDC created and redeemed?
USDC enters circulation when a Circle Mint customer sends US dollars to Circle and receives the same number of tokens. It leaves circulation when a customer returns tokens and receives dollars 1:1. Circle says Circle Mint serves exchanges, institutional traders, banks and large financial institutions, and is not available to individuals or small businesses.[3] Circle does not charge fees for turning US dollars into USDC.[5]
Open a Circle Mint account. Only account holders in good standing can mint and redeem directly.[5]
Mint. Send dollars; receive USDC 1:1.[3]
Redeem. Return USDC; receive dollars 1:1. Circle discloses reserve holdings weekly together with mint and burn flows.[4]
The same loop underpins most fiat-backed stablecoins; see how stablecoins keep their peg.
What backs USDC, and what is it used for?
Circle says most USDC reserves sit in the Circle Reserve Fund (USDXX), an SEC-registered government money market fund managed by BlackRock that holds cash, short-dated US Treasuries and overnight Treasury repurchase agreements. The rest is cash, mostly at a handful of large banks.[4] A Big Four accounting firm gives monthly third-party assurance that reserves exceed the USDC in circulation, under AICPA attestation standards.[4] An attestation is narrower than a full audit; see stablecoin reserves and attestations.
In the EU, Circle says its French subsidiary received an electronic money institution licence from France's ACPR and issues USDC there under MiCA's rules for e-money tokens.[6] ESMA states those stablecoin rules applied from 30 June 2024.[10]
As a dollar-like unit on blockchains, USDC can be used to move value between exchanges, settle trades on decentralized exchanges or lend in DeFi protocols, each with its own extra risks.
What are the key dates in USDC's history?
USDC's timeline is short but includes one of the best-documented stablecoin de-pegs. Dates come from Circle, the Federal Reserve, ESMA and the White House.[1][9][10][11]
| Date | What happened |
|---|---|
| 26 September 2018 | USDC launched by CENTRE, with Circle as first commercial issuer |
| 23 October 2018 | Circle describes CENTRE, co-founded with Coinbase, as a joint venture for fiat stablecoin standards |
| March 2023 | $3.3 billion of reserves held at Silicon Valley Bank; USDC trades as low as 86 cents |
| 12–13 March 2023 | US authorities announce SVB depositors will be protected; USDC recovers when Circle resumes redemptions |
| 30 June 2024 | MiCA rules for e-money tokens apply in the EU |
| 1 July 2024 | Circle's French subsidiary starts issuing USDC under MiCA |
| 18 July 2025 | US GENIUS Act signed |
| 16 September 2026 | Circle lists native support on 38 networks |
Sources for the 2018, 2024 issuer and 2026 rows: Circle.[2][6][3]
What are the specific risks of holding USDC?
Bank and reserve risk. In March 2023 Circle said $3.3 billion of USDC reserves, about 8%, were held at Silicon Valley Bank.[7] A Federal Reserve note found USDC traded as low as 86 cents, recovering after the joint Fed, Treasury and FDIC announcement on Sunday 12 March and fully once Circle resumed redemptions on Monday 13 March.[9] The same note says Circle redeemed $3.8 billion and minted $0.8 billion from that Monday to 15 March.[9]
Weekend and access risk. The Fed note links the de-peg to doubt about access to reserves and to primary-market redemptions being shut over the weekend.[9]
Freezes. Circle can block addresses and freeze USDC.[5]
Run risk. The US Treasury warns that runs can occur if users lose confidence that an issuer will honour redemptions.[12]
What mistakes do beginners make with USDC?
- Expecting to redeem with Circle personally. Circle Mint is not open to individuals or small businesses.[3]
- Assuming regulation keeps the price fixed. March 2023 showed the price can fall below $1 when reserves are in doubt.[9] See what a depeg is.
- Picking the wrong network. Circle lists 38 supported networks;[3] sender and receiver must use the same one.
- Chasing advertised yield. USDC is not designed to create returns, so any yield comes from lending or other activity that adds risk.[5]
Questions readers ask
Who issues USDC?
Circle Internet Financial, LLC, with Circle Internet Financial Europe SAS as a second issuer for the EEA since 1 July 2024.[5]
Can I redeem USDC for dollars myself?
Not directly unless you have a Circle Mint account; Circle says it is not available to individuals or small businesses.[3] Most people sell on an exchange.
Is USDC audited?
Circle publishes monthly third-party assurance reports from a Big Four firm under AICPA attestation standards.[4] An attestation checks reserves at points in time; it is not a full audit of Circle.
USDC is a dollar token from a licensed issuer that publishes weekly reserve data and monthly attestations.[4] That transparency did not stop a brief de-peg when a bank holding part of its reserves failed. Hold it knowing that you rely on Circle, its banks and its redemption door, and that Circle can freeze tokens.
Sources
- Circle, USD Coin launches with wide ecosystem support (2018)Primary source
- Circle, Circle & Coinbase Join Forces to Found the CENTRE Consortium (2018)Primary source
- Circle, USDC (2026)Primary source
- Circle, USDC Transparency (2026)Primary source
- Circle, USDC Terms (2025)Primary source
- Circle, Circle is first global stablecoin issuer to comply with MiCA (2024)Primary source
- Circle, $3.3 billion of USDC reserve risk removed, dollar de-peg closes (2023)Primary source
- Board of Governors of the Federal Reserve System, Primary and Secondary Markets for Stablecoins (FEDS Notes) (2024)Primary source
- Board of Governors of the Federal Reserve System, In the Shadow of Bank Runs: Lessons from the Silicon Valley Bank Failure and Its Impact on Stablecoins (FEDS Notes) (2025)Primary source
- European Securities and Markets Authority, Markets in Crypto-Assets Regulation (MiCA) (2024)Primary source
- The White House, Fact Sheet: President Donald J. Trump Signs GENIUS Act into Law (2025)Primary source
- President's Working Group on Financial Markets, FDIC and OCC (US Treasury), Report on Stablecoins (2021)Primary source
Educational content only — not financial, investment, legal or tax advice. Crypto-assets are high-risk and you could lose all the money you put in. Rules differ by country; check with your national regulator. See our risk disclosure and editorial policy.
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Depeg
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