As the second-largest stablecoin by market capitalization, USDC has gained institutional trust with its 100% dollar reserves and rigorous audits, becoming an essential infrastructure in the crypto market. Its issuer, Circle, actively embraces regulation and has recently advanced compliance arrangements in the US, Europe, and Japan, while partnerships with traditional financial giants like Visa further expand payment scenarios. USDC also faces severe challenges: the Federal Reserve's interest rate hikes have led to shrinking reserve income, pressuring the issuer's profitability; Tether (USDT), leveraging its first-mover advantage, still holds a 70% market share; and under tightening regulations, the demand for transparency in reserve assets continues to rise. With competitors like PayPal launching similar products, USDC needs to accelerate innovation within a compliance framework to maintain its market share.