USD Coin
{{Short description|Cryptocurrency linked to the US dollar}}
{{About|the cryptocurrency|United States coinage|Coins of the United States dollar}}
{{Use dmy dates|date=February 2022}}
{{Infobox cryptocurrency
| currency_name = USD Coin
| image_1 = USD Coin logo (2024).png
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| symbol =
| ticker_symbol = USDC
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| white_paper = {{URL|https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf|USDC White Paper}}
| implementations =
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| initial_release_date = September 2018
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| author =
| developer = Circle
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| website = {{URL|https://www.circle.com/en/usdc}}
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| Network = Etherium ERC-20
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USD Coin (USDC) is a cryptocurrency stablecoin which is issued by Circle. It is pegged to the United States dollar, and is distinct from a central bank digital currency (CBDC).{{Cite web|last=Arnold|first=Martin|date=2018-05-15|title=China bitcoin miner Bitmain leads $110m investment in Circle|url=https://www.ft.com/content/9b1cf5dc-582e-11e8-bdb7-f6677d2e1ce8|access-date=2020-06-06|website=Financial Times|archive-date=2020-11-09|archive-url=https://web.archive.org/web/20201109011705/https://www.ft.com/content/9b1cf5dc-582e-11e8-bdb7-f6677d2e1ce8|url-status=live}}
Usage
USDC operates as an Ethereum ERC-20 token and is also available on several other blockchain platforms such as Base and Polygon.{{cite web |title=Centre {{!}} USD Coin |url=https://www.centre.io/usdc?hsLang=en |website=www.centre.io |access-date=16 September 2022 |language=en}}{{cite news |title=USDC to be available on 15 blockchains after adding 6—including Base, Optimism, and Polygon PoS—over next 2 months |url=https://fortune.com/crypto/2023/08/23/usdc-base-cosmos-near-optimism-polkadot-polygon-pos-circle/ |access-date=28 February 2024 |work=Fortune}} Visa initiated a pilot program to send USDC via the Solana blockchain to payment firms Worldpay and Nuvei, who could then transfer payment to merchants.{{Cite web |title=Visa to send stablecoin USDC over Solana to help pay merchants in crypto |url=https://fortune.com/crypto/2023/09/05/visa-stablecoin-usdc-solana-worldpay-nuvei-merchants-payments/ |access-date=2023-09-19 |website=Fortune Crypto |language=en}}
Assets and Reserves
Until mid-2021, Circle stated that each USDC was backed by either one U.S. dollar in reserve or by other "approved investments", though the specifics of these investments were not disclosed. In June 2021, Circle updated its website wording from "backed by US dollars" to "backed by fully reserved assets".{{Cite news|url=https://www.ft.com/content/7676451f-23a9-42eb-a179-c3ebbcfc0bff|title=Circle listing will test top stablecoin's transparency over reserves|newspaper=Financial Times|date=9 July 2021|last1=Venkataramakrishnan|first1=Siddharth}}
As of 2020, USDC reserves were regularly attested (but not audited) by Grant Thornton, LLP,{{Cite news|last=Irrera|first=Anna|date=2018-05-16|title=Circle raises $110 million, plans to create dollar-pegged cryptocurrency|language=en|work=Reuters|url=https://www.reuters.com/article/us-crypto-currencies-circle/circle-raises-110-million-plans-to-create-dollar-pegged-cryptocurrency-idUSKCN1IG38R|access-date=2020-06-06|archive-date=2020-06-06|archive-url=https://web.archive.org/web/20200606095247/https://www.reuters.com/article/us-crypto-currencies-circle/circle-raises-110-million-plans-to-create-dollar-pegged-cryptocurrency-idUSKCN1IG38R|url-status=live}} and as of 2021, the monthly attestations could be found on the Centre Consortium's website.{{Cite web|last=Centre|title=Centre {{!}} USD Coin|url=https://www.centre.io/usdc-transparency|access-date=2021-06-07|website=www.centre.io|language=en}}
In December 2024, Forbes reported that USDC had $41 billion in assets under management.{{cite news|url=https://www.forbes.com/sites/digital-assets/2024/12/11/circle-and-binance-become-a-stablecoin-power-couple/|title=Circle And Binance Become A Stablecoin Power Couple|work=Forbes|date=December 11, 2024|last= Bambysheva |first=Nena|access-date=December 15, 2024}}
History
Circle announced USDC on May 15, 2018, and it was subsequently launched in September of the same year by Centre, a consortium formed through a joint venture between Circle and Coinbase.{{Cite web |last=Rooney |first=Kate |date=2018-10-23 |title=Cryptocurrency giants Coinbase and Circle form joint venture to boost adoption of dollar-backed digital coins |url=https://www.cnbc.com/2018/10/23/cryptocurrency-giants-coinbase-and-circle-form-a-joint-venture-to-boost-adoption-of-dollar-backed-stable-coins.html |access-date=2024-01-07 |website=CNBC |language=en}}
On March 29, 2021, Visa announced its support for USDC, enabling the cryptocurrency to be used for selling transactions within its payment network.{{cite web |last1=Hussain |first1=Noor Zainab |title=Exclusive: Visa moves to allow payment settlements using cryptocurrency |url=https://www.reuters.com/article/crypto-currency-visa/exclusive-visa-moves-to-allow-payment-settlements-using-cryptocurrency-idINKBN2BL0XI |website=Reuters |language=en |date=29 March 2021 |access-date=30 March 2021 |archive-date=30 March 2021 |archive-url=https://web.archive.org/web/20210330032118/https://www.reuters.com/article/crypto-currency-visa/exclusive-visa-moves-to-allow-payment-settlements-using-cryptocurrency-idINKBN2BL0XI |url-status=live }}
In July 2022, Circle reported that the circulation of USDC had reached $55 billion.{{Cite web|title=A Letter from our CEO {{!}} Circle's Strength, Stability & Transparency|url=https://www.circle.com/blog/a-letter-from-our-ceo-circles-strength-stability-transparency}}
On March 11, 2023, USDC temporarily lost its peg to the US dollar after Circle revealed that $3.3 billion dollars, about 8% of its reserves, were jeopardized due to the collapse of Silicon Valley Bank the day before.{{cite news |last1=Ge Huang |first1=Vicky |last2=Miao |first2=Hannah |last3=Ostroff |first3=Caitlin |title=Circle's USDC Stablecoin Breaks Peg With $3.3 Billion Stuck at Silicon Valley Bank |url=https://www.wsj.com/articles/crypto-investors-cash-out-2-billion-in-usd-coin-after-bank-collapse-1338a80f |work=The Wall Street Journal |date=11 March 2023}} USDC regained its dollar peg four days later.{{Cite news |date=2023-03-16 |title=US Bank Crisis Prompts Stablecoin Backer's Flight to Big Lenders |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-03-16/us-bank-crisis-prompts-stablecoin-usdc-backer-s-flight-to-big-lenders |access-date=2023-09-19}}
In August 2023, Circle and Coinbase dissolved the Centre Consortium, the entity responsible for managing USDC since 2018. This decision granted Circle full governance over USDC.{{Cite web |title=USDC to be available on 15 blockchains after adding 6—including Base, Optimism, and Polygon PoS—over next 2 months |url=https://fortune.com/crypto/2023/08/23/usdc-base-cosmos-near-optimism-polkadot-polygon-pos-circle/ |access-date=2023-09-19 |website=Fortune Crypto |language=en}}
In February 2024, Circle discontinued USDC on the TRON blockchain following a risk management review. Although the minting of new USDC tokens halted on 21 February 2024, customers have until February 2025 to transfer USDC to other blockchains.{{cite news |last=Wilson|first=Tom |title=Crypto firm Circle to end support for USDC stablecoin on Tron blockchain |url=https://www.reuters.com/technology/crypto-firm-circle-end-support-usdc-stablecoin-tron-blockchain-2024-02-21/ |access-date=2024-03-29 |work=Reuters |date=2024-02-21}}
According to Forbes in December 2024, USDC primarily competes with Tether, which dominates the market by market capitalization. USDC and Tether nearly reached parity in 2022, but USDC declined coinciding with the Collapse of Silicon Valley Bank, where Circle held reserves.{{cite news |last1=Schwartz |first1=Leo |title=Circle reveals it has $3.3 billion stuck at Silicon Valley Bank as USDC wobbles against its peg |url=https://finance.yahoo.com/news/circle-reveals-3-3-billion-041025738.html |access-date=January 3, 2025 |work=Fortune |via=Yahoo Finance |date=March 10, 2023}} According to data compiled by Visa, USDC overtook Tether in stablecoin transaction volume in August 2024.{{Cite news |last=Shukla |first=Sidhartha |date=April 29, 2024 |title=Circle's USDC Takes Lead in Stablecoin Transactions, Visa Says |url=https://www.bloomberg.com/news/articles/2024-04-29/circle-s-usdc-takes-lead-in-stablecoin-transactions-visa-says |work=Bloomberg}}
See also
References
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External links
- {{Official website}}
{{Cryptocurrencies}}
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