USD Coin

USD Coin (USDC) is a digital stablecoin pegged to the United States dollar. USD Coin is managed by Circle. USDC is issued by a private entity and should not be confused with a central bank digital currency (CBDC).

Usage
USDC is available as an Ethereum ERC-20 token, and on other blockchains. Visa began a pilot program to send USDC over the Solana blockchain to the payment firms Worldpay and Nuvei, who could then transfer payment to merchants.

Reserves
Circle claimed prior to mid-2021 that each USDC was backed by a dollar held in reserve, or by other "approved investments", though the other investments were not detailed. The wording on the Circle website changed from the previous "backed by US dollars" to "backed by fully reserved assets" in June 2021.

As of 2020, USDC reserves were regularly attested (but not audited) by Grant Thornton, LLP, and as of 2021, the monthly attestations could be found on the Centre Consortium's website.

History
USDC was first announced on 15 May 2018 by Circle, and was launched in September 2018 by a consortium called Centre, a joint venture between Circle and Coinbase.

On March 29, 2021, Visa announced that it would allow the use of USDC to settle transactions on its payment network.

, Circle said that there were 55 billion USDC in circulation.

On March 11, 2023, USDC lost its peg to the dollar for several days after Circle publicly stated that $3.3 billion, approximately 8% of its reserves, were at risk due to the collapse of Silicon Valley Bank that had occurred the previous day. USDC regained its peg to the dollar four days later.

In August 2023, Circle and Coinbase closed the Centre Consortium, the organization that had managed USDC since 2018, giving Circle sole governance of USDC.

Circle discontinued USDC on the TRON blockchain in February 2024 as a result of risk management assessment. While minting of new USDC halted on 21 February 2024, customers will have until February 2025 to transfer USDC to other blockchains.

According to data compiled by Visa, USDC overtook Tether in stablecoin transaction volume in 2024.