Coin columns · Ethereum City (Capital)
USDC: Circle’s Dollar Stablecoin and How It Keeps the Peg
Born with Coinbase in 2018, now led by Circle
USDC is a stablecoin (a coin designed to stay at one US dollar) issued by the US fintech company Circle, which promises one dollar for each USDC. Launched on Ethereum in 2018, it now runs on many chains.
1. Circle’s dollar, started with Coinbase
USDC launched in September 2018 through Centre, a consortium of Circle and the exchange Coinbase. In August 2023 Centre was dissolved and Circle took over issuance, while Coinbase stayed a shareholder and distribution partner. Circle has been listed on the New York Stock Exchange since June 2025.
On the Crypto Nation map, USDC stands in Ethereum City, because it was first issued on Ethereum. Circle now also issues ‘native USDC’ on chains such as Solana, Base and Arbitrum.
2. How the one-dollar value is kept
Redemption is the core: approved business customers can send Circle one dollar for one USDC and return one USDC for one dollar. To keep that promise, Circle holds cash and short-term US Treasuries, much of it in a BlackRock-managed fund. Reserve details are published regularly and confirmed by an outside accounting firm.
Individuals mostly trade USDC on exchanges. Between chains, Circle’s CCTP burns USDC on the original chain and mints the same amount on the destination, so no separate ‘wrapped’ token is created.
3. Uses and milestones
USDC serves as base currency on exchanges, collateral in DeFi (decentralized finance) lending and trading, and a tool for overseas transfers and business payments that settle even on weekends. Circle says its Circle Payments Network will link banks and payment firms through USDC.
Milestones: the 2018 launch; March 2023, when part of the reserves was stuck at the failed Silicon Valley Bank and USDC briefly slipped below one dollar; a French e-money licence in July 2024 under Europe’s MiCA rules; and America’s GENIUS Act stablecoin law in July 2025. In 2026 Circle won a US national trust bank charter in August, and its chain Arc, which charges fees in USDC, opened its mainnet on 16 September.
4. Things to know
USDC’s stability rests on Circle’s promise and reserve management. If a bank holding reserves fails, as in March 2023, the one-dollar value can wobble, and Circle can freeze USDC at sanctioned addresses, so it is far from unstoppable money.
Most of Circle’s income is interest on reserves, so falling rates affect it, as does revenue shared with Coinbase. Rules are moving: the GENIUS Act requires one-to-one reserves and regular disclosure, but detailed rules were still being finalized in August 2026, and it bars issuers from paying holders interest. Europe applies MiCA. Check availability and taxes where you live.
Written from information public up to October 2026. It does not recommend or rate any coin and is not investment advice. If something is wrong, please tell us through the contact page.