In the world of cryptocurrencies, price stability is rare, which is why stablecoins are gaining increasing popularity. One of the most well-known and widely used is USDC (USD Coin) — a stable digital currency pegged to the US dollar at a ratio of 1:1. In this article, we will discuss the origin of the USDC token, how much is in circulation, how reliable it is, and its pros and cons.
How did USDC come about?
The USDC token was launched in 2018 by the Centre consortium, created by two companies: Circle and Coinbase. The main idea was to provide cryptocurrency market users with a stable asset fully backed by real US dollars and regulated in accordance with US law.
Unlike some other stablecoins, USDC is issued only after passing strict verification and having fiat backing in bank reserves. All reserves must be subject to independent audit, ensuring transparency.
How much USDC is in circulation?
According to data for 2025, approximately 27 billion USDC is in circulation (data may change daily). This token is actively used on all leading blockchains: Ethereum, Solana, Polygon, Arbitrum, and others.
Reliability of USDC
The reliability of USDC is based on three main factors:
1. Full backing: for every issued USDC, Circle holds 1 US dollar or its equivalent (Treasury bonds, deposits) in reserves.
2. Regulatory transparency: the issuer of USDC (Circle) is registered as a financial institution in the USA and is under the control of regulatory authorities.
3. Monthly audits: the independent company Grant Thornton confirms the existence of reserves corresponding to the issued amount of tokens.
Advantages of USDC
• Stability: the peg to the dollar makes it a reliable tool for protecting against the volatility of the crypto market.
• Transparency: regular audits and reporting ensure a high level of trust.
• Wide support: used on all major decentralized and centralized platforms.
• Instant transfers: unlike banking systems, USDC transfers occur in seconds, at any time of day.
• Integration with DeFi: allows participation in liquidity, staking, lending protocols, and more.
Disadvantages of USDC
• Centralization: issuance and management are in the hands of a private company, which contradicts the ideals of decentralization.
• Regulatory risks: changes in American legislation may impose restrictions on the issuance or distribution of the token.
• Address blocking: Circle can freeze USDC on certain wallets at the request of regulators, as has already happened in several cases.
Conclusion
USDC is one of the most reliable and transparent stablecoins on the market. It is ideal for storage, settlements, and active participation in DeFi protocols. However, its use is associated with risks of centralized control. In a world where stability and trust play a key role, USDC remains one of the best choices among digital dollars.
Comparison of USDC and DAI: which stablecoin to choose?
In the world of stablecoins, USDC and DAI occupy important but different niches. Both tokens provide stability but differ in structure, management, and risks. Below is an analysis of their key differences.
1. Mechanism of backing
USDC:
Completely centralized. Each token is backed by 1 US dollar or its equivalent (Treasury bonds, cash). The issuer is Circle, which controls issuance and can block addresses.DAI:
Decentralized. Backed by over-collateralization in cryptocurrency (ETH, WBTC, USDC, etc.). Managed by the MakerDAO protocol, without a central company.
2. Transparency and control
USDC:
Transparent audits, but trust is based on the reputation of Circle and American regulation. Circle has the right to freeze funds upon legal requests.DAI:
All processes are on smart contracts, and management is through DAO. No one can freeze DAI directly, but there are risks of cascading liquidation during market downturns.
3. Volatility and stability
USDC:
Very stable, as it is directly pegged to the dollar. Minimal fluctuations.DAI:
Stable in 99% of cases, but during periods of high volatility of collateral assets, it may temporarily lose its peg (link to the dollar).
4. Use and compatibility
USDC:
Used on most exchanges, in DeFi, NFTs, games, and international settlements. Supported as the official currency on many platforms.DAI:
The main token in the world of DeFi. Actively used in staking, lending, DAOs, and decentralized exchanges.
5. Reliability and risks
Conclusion
Choose USDC if you need stability, transparency, and support from major exchanges. Suitable for storage and international transfers.
Choose DAI if you are an active DeFi user and value decentralization. A great choice for working within the crypto economy.
