USD Coin (USDC)

USD Coin (USDC) is a stablecoin pegged 1:1 to the U.S. dollar. Launched in 2018 by Circle and Coinbase under the Centre consortium, USDC is designed to combine the stability of the dollar with the efficiency of blockchain.

What is USDC?

USDC is a fiat-backed stablecoin, meaning each token is backed by one U.S. dollar or cash-equivalent reserves held in regulated financial institutions.
It’s available on multiple blockchains, including Ethereum, Solana, Polygon, and the XRP Ledger.

Launch year: 2018
Issuer: Circle & Coinbase (Centre Consortium)
Peg: 1 USDC = 1 USD
Reserves: cash and short-term U.S. Treasuries

How Does USDC Work?

Minting & redeeming: users can always exchange 1 USDC for $1 with Circle.
Transparency: reserves are regularly audited and publicly reported.
Multi-chain: operates across major blockchains for flexibility.
Programmability: works with smart contracts for payments and DeFi.

Why is USDC Important?

Stability: trusted as one of the most secure stablecoins.
DeFi backbone: widely used for lending, borrowing, and liquidity pools.
Payments: companies integrate USDC for fast, dollar-denominated transactions.
Transparency: Circle publishes regular attestations of reserves.

USDC Use Cases

Trading: easy way to move in and out of volatile crypto assets.
DeFi protocols: collateral, lending, and yield farming.
Cross-border payments: faster and cheaper than traditional wire transfers.
Savings: some platforms offer yield on USDC holdings.

Risks of USDC

Centralization: issued and controlled by Circle (not decentralized).
Regulation: subject to U.S. government policies and financial laws.
Blacklisting: Circle can freeze certain USDC addresses if required.
Competition: rivals like USDT and decentralized stablecoins (DAI).

Lanzo Tip 🪙

USDC is one of the safest stablecoins for trading and DeFi. Great for holding value without volatility — but remember, it’s centralized, so regulations or freezes can still affect it.