💡 Why does USDC remain stable and pegged?

Backed 1:1 by simple and more transparent reserves (such as cash and short-term government bonds) with periodic disclosures that build user trust.

Absence of significant volatility; it has been deemed stable even during financial cracks like the collapse of Silicon Valley Bank in March 2023, quickly reverting to 1 $ .

📈 Key trends until July 2025

Supply volume is continuously increasing, surpassing $60 billion, with significant expansion in applications within DeFi and fast payments across multiple networks.

It is intensively used in trading, lending, liquidity provision (Liquidity mining), and cross-border money transfers.

⚖️ Challenges and Risks

Regulation: It may be classified in the future as a financial instrument (security), increasing legal and regulatory burdens.

Market risks: Circle (the owner of USDC) relies on income from interest on reserves, making it susceptible to interest rate fluctuations.

Competition and Sovereignty: In addition to Tether, there are concerns about the issuance of CBDCs or larger banks and technologies entering the space, which could impact USDC's position.

🏛️ Legal Developments

Legislation like the "GENIUS Act" in the United States encourages formal regulation of stablecoins — this supports USDC but also brings new regulatory risks.

European institutions, such as Amundi, have expressed concerns that the proliferation of stablecoins affects national monetary sovereignty and the global payment system.