What is USDC?

Introduction

USD Coin (USDC) is a stablecoin pegged 1:1 to the US dollar. Created by Circle in partnership with Coinbase, USDC is one of the most transparent and regulated stablecoins in the cryptocurrency market.

Each USDC token is backed by cash and short-term US Treasury bonds held in regulated financial institutions. The reserves are regularly attested by independent accounting firms.

How USDC Works

USDC vs USDT

While both USDC and USDT (Tether) are dollar-pegged stablecoins, they differ in transparency and regulation:

• Transparency: USDC provides regular third-party attestations; USDT's reserves are less transparent
• Regulation: USDC is issued by regulated financial institutions
• Market cap: USDT has higher market cap and liquidity
• Use cases: Both are widely used in trading and DeFi

Use Cases

• Trading: Store value between trades without converting to fiat
• DeFi: Provide liquidity and earn yield in decentralized protocols
• Remittances: Send dollars globally with low fees
• Payments: Accept stable cryptocurrency payments
• Savings: Earn interest through various platforms

Where to Buy USDC

USDC is available on virtually all major cryptocurrency exchanges. It can also be minted directly through Circle for institutional users.

Earning Yield with USDC

USDC holders can earn yield through various methods including DeFi lending protocols, centralized exchange savings products, and liquidity provision. Yields vary based on market conditions and platform risk.

Learn more about crypto strategies in our crypto investing basics guide.