$USDC USDC (USD Coin) is a compliant dollar stablecoin jointly launched by Circle and Coinbase, pegged to the US dollar at a 1:1 ratio, primarily used for cryptocurrency trading, cross-border payments, and decentralized finance (DeFi). Here are its core points:

1. Basic Features and Operational Mechanism

Pegging and Reserves

USDC is fully backed by US dollars and short-term U.S. Treasury securities, with a 1:1 reserve requirement mandated by the GENIUS Act, ensuring transparency and compliance. As of March 2025, the circulating supply of USDC is approximately $60 billion, with reserve assets reaching $60.7 billion, of which ultra-short-term U.S. Treasury bonds account for 40%.

Issuance and Revenue Model

Circle generates USDC by acquiring users' dollars and investing in low-risk assets (such as U.S. Treasuries) to earn interest spread. In 2024, its reserve income reached $1.66 billion, accounting for 99% of total revenue.

2. Market Position and Competition

Industry Ranking

USDC is the second-largest stablecoin, following USDT (with a market cap of $153.3 billion). Its compliance and transparency make it the preferred choice for institutions, especially in the U.S. and European markets.

Compliance Advantages

USDC complies with the regulatory frameworks of the United States and the European Union (such as the MICA regulation), undergoes regular audits, and is more trusted by traditional financial institutions compared to USDT. With the passage of Hong Kong's Stablecoin Regulation, USDC's compliant applications in Asia are further expanding.