What is USDC?

USDC is a stablecoin issued by the US company Circle. Each token is designed to be worth one US dollar and is backed by cash and short-term US government debt. About $73 billion was in circulation in October 2026.

Where it came from

Circle was founded in 2013. It launched USDC in September 2018 through a consortium called Centre, whose members included the exchange Coinbase. Centre was dissolved in August 2023, leaving Circle in sole charge of the token.

Circle became a public company on the New York Stock Exchange on 4 June 2025. In July 2026 it received final approval from a US banking regulator to form a national trust bank.

How it works

Circle issues USDC against the dollars it receives and says the token is "always redeemable 1:1 for US dollars".

Direct redemption is for institutions. Circle's service for it is open to exchanges, banks and large financial firms, and is not available to individuals. Everyone else buys and sells USDC on an exchange.

USDC is issued natively on 38 blockchains. As with any token, the version on one network is separate from the version on another. Lesson 33 explains the care that needs.

What backs it

Circle says the reserves are kept apart from its own funds, for the benefit of USDC holders.

• Most of the reserve sits in the Circle Reserve Fund, a government money market fund registered with the US Securities and Exchange Commission and managed by BlackRock. It holds cash, short-dated US Treasuries and overnight repurchase agreements.
• The rest is cash held at large banks.
• Circle publishes the holdings every week, and a Big Four accounting firm gives assurance on them every month.

What people use it for

USDC is used for trading, for payments and as the dollar side of many DeFi services. Lesson 41 introduces DeFi.

Risks to know

• Reserves can be caught in a bank failure. In March 2023 Circle had $3.3 billion of USDC's reserves at Silicon Valley Bank when the bank failed. Over that weekend USDC traded as low as 86 cents. It returned to one dollar after US authorities protected the bank's depositors.
• Tokens can be frozen. Issuers of the large dollar tokens can freeze the tokens at an address. Lesson 10 covers this.
• It is not a bank account. There is no deposit insurance on the token.
• Most holders cannot redeem directly. In a panic, the price on an exchange is the price you get.
• Networks come and go. Circle stopped supporting USDC on the Tron network in February 2024.

Learn more

Lesson 10 explains the three ways stablecoins hold their price. Lesson 45 covers what happens to DeFi services when a stablecoin slips.