$USDC What is USDC?

USDC (USD Coin) is a stablecoin issued by Circle and backed 1:1 by US dollar reserves. Unlike some other stablecoins, USDC claims to have fully transparent reserves, held in US banks, and audited regularly.

Regulator Involvement

Circle has proactively collaborated with regulators in the US, including:

Registering as a Money Services Business (MSB) with FinCEN.

Partnering with traditional banks like BNY Mellon.

Supporting a stricter regulatory framework for stablecoins.

Support from the Government?

In 2023, US officials stated that stablecoins that are "managed transparently and in accordance with regulations" could be part of the future financial system. Circle and USDC are often mentioned in this context because:

Transparency in weekly reserve reports.

Commitment to KYC/AML compliance principles.

Desire to be part of the official payment system.

USDC vs Other Stablecoins

Unlike Tether (USDT), which is often criticized for lack of transparency, USDC tends to be more trusted by regulators. This is why USDC is frequently used by financial institutions and DeFi projects that prioritize legal compliance.