USDC

What Is USDC?

USDC is a stablecoin pegged 1:1 to the US dollar. A “stablecoin” is a type of cryptocurrency designed to maintain a stable value by being linked to a fiat currency, such as USD. “Pegged” means that the issuer backs each USDC token with an equivalent amount of cash and highly liquid assets like short-term US Treasury bonds, and commits to redeeming USDC for dollars at a 1:1 ratio under regulatory compliance. USDC was originally launched on public blockchains like Ethereum, serving as an on-chain payment and settlement “digital dollar”.

USDC (USDC): Current Price, Market Cap, and Circulating Supply

As of 2025-12-19 09:02 (UTC), the data shows: USDC price is $0.999892; 24-hour change is -0.0066%; 7-day change is 0.0078%; 30-day change is 0.0203%. The circulating supply stands at 77,269,054,513.38837 tokens, with a corresponding circulating market cap of about $77,260,702,563.00; fully diluted market cap is identical. Market cap dominance is approximately 2.6055%, with a 24-hour trading volume around $14,676,141,427.45, and 35,662 active trading pairs.

These indicators mean: Price close to $1 reflects effective pegging; “circulating supply” refers to the amount of USDC available in the market; “market cap” equals price times circulating supply; “trading volume” indicates how actively the token changes hands. Stablecoins usually show minor short-term volatility, but can experience “depegging” (temporary deviation from $1) under extreme conditions.

Who Created USDC (USDC) and When?

USDC was launched in 2018 by regulated fintech firms through a governance framework called Centre, with its initial release on Ethereum before expanding to multiple blockchains. Over the years, the issuer has enhanced reserve transparency and cross-chain functionality, bringing USDC to more ecosystems (such as Ethereum and Tron). Sources: Circle website and developer documentation, as of December 2025.

How Does USDC (USDC) Work?

The core operational flow of USDC includes:

• Minting & Redemption: Qualified users complete KYC (identity verification) and compliance checks before depositing USD to receive an equal amount of USDC (minting), or exchanging USDC back for USD (redemption).
• Reserve Backing: The issuer allocates received USD into cash and short-term US Treasury assets with high liquidity and safety, regularly publishing reserve attestations (audit or assurance reports) to demonstrate full 1:1 backing.
• Price Stability Mechanism: When market price deviates from $1, arbitrageurs can mint or redeem via secondary markets and issuance channels to restore the peg.
• Multichain & Cross-chain: USDC is natively issued on several blockchains; cross-chain transfers typically use official protocols such as CCTP (Cross-Chain Transfer Protocol), which helps avoid smart contract risks from unofficial bridges. CCTP destroys USDC on the source chain and mints an equal amount on the destination chain, maintaining overall supply consistency.

What Can You Do With USDC (USDC)?

• Trading & Hedging: Swap other cryptocurrencies for USDC during volatile markets to reduce short-term exposure; also widely used as a quote currency in trading pairs.
• Payments & Settlements: Merchants and freelancers can accept USDC for near-instant global settlements, saving time and cross-border transaction costs.
• Cross-border Transfers & Remittances: Move funds between countries or platforms using on-chain transfers as an alternative to traditional remittance channels.
• DeFi Collateral & Liquidity: Use USDC as collateral, liquidity, or liquidation unit in decentralized finance—note protocol-specific risks.
• Accounting & Bookkeeping: Denominate income and expenses in USDC to minimize conversion errors and streamline reporting.

Major Risks and Regulatory Points of USDC (USDC)

• Depegging Risk: In extreme markets or during liquidity crunches, USDC may temporarily trade away from $1. Mitigate impact by diversifying holdings, using stop-losses, and accessing official redemption channels.
• Issuer & Reserve Counterparty Risk: Security and transparency of reserve assets are crucial; review issuer reserve reports and frequency/scope of third-party attestations.
• Regulatory Compliance & Address Freezes: To comply with sanctions and anti-money laundering laws, issuers may freeze specific addresses, affecting access to funds for restricted wallets.
• On-chain Operational Risks: Errors like selecting the wrong withdrawal network, entering incorrect addresses, or omitting Memo/Tag can result in irrecoverable losses—always test transfers with small amounts first.
• Smart Contract & Cross-chain Risks: Using unofficial bridges or unaudited contracts introduces extra security vulnerabilities.
• Exchange & Private Key Risks: Custody on centralized platforms entails platform risk; self-custody requires safeguarding private keys and mnemonic phrases to prevent phishing or social engineering attacks.

What Is the Long-Term Value of USDC (USDC)?

USDC’s long-term value lies not in price appreciation but in its “utility”—as a globally programmable settlement layer offering stable valuation, rapid clearing, and cross-border reach. Key advantages include a compliant framework, transparent reserve disclosures, interoperability with traditional finance and real-world assets (RWA), native multichain issuance, and scalable official cross-chain solutions. Challenges include competition from other stablecoins’ network effects, evolving regulatory landscapes, and ongoing demands for reserve safety and liquidity.

How Do I Buy and Safely Store USDC (USDC) on Gate?

Step 1: Registration & KYC. Visit gate.com or the official Gate app to register an account and complete KYC verification. Enable Google Authenticator and withdrawal whitelist for added security.

Step 2: Fund Deposit. Follow on-site instructions to deposit fiat currency or transfer existing crypto assets into your Gate account, ensuring funds are available in your spot wallet.

Step 3: Search Trading Pairs. On the spot trading page, search for “USDC”, select pairs with strong liquidity (e.g., USDC/USDT), and check market depth and prices.

Step 4: Place a Buy Order. Beginners can use “market orders” for instant execution; experienced users may prefer “limit orders” at specific prices. Confirm order quantity and fees before submitting.

Step 5: Storage & Withdrawal. For short-term trading, you can keep funds in your Gate account with security features enabled; for long-term holding, withdraw to a self-custody wallet (hardware wallet or compliant software wallet). When withdrawing: choose the correct network (such as Ethereum or Tron), verify addresses and Memo/Tag fields, and always test small amounts before large withdrawals.

Step 6: Risk Control & Record-Keeping. Activate two-factor authentication for logins and withdrawals; set up withdrawal whitelists; retain deposit, withdrawal, and transaction records for reconciliation and tax reporting (if applicable).

How Is USDC (USDC) Different from USDT?

• Issuance & Compliance: USDC is issued by regulated fintech institutions with an emphasis on reserve transparency and regulatory frameworks; USDT is operated by another issuer providing reserve reports but with different compliance strategies and disclosure timelines.
• Reserve Transparency & Attestation: USDC typically offers frequent reserve attestations with detailed breakdowns; USDT also publishes reserve compositions but differs in asset structure and reporting format. Investors should review the latest attestation reports for both.
• Market Size & Use Cases: As of December 2025, USDC’s market cap share is about 2.6055% (per data above), while USDT has higher overall circulation and broader coverage across trading depth and chains. However, in compliant payments and institutional integrations, USDC has notable advantages.
• Risks & Functionality: Both can enforce blacklist policies and freeze specific addresses for compliance reasons; cross-chain mechanisms and compliance features differ—users should choose based on trading depth, regulatory needs, and network fees.

Summary of USDC (USDC)

USDC is a USD stablecoin backed by fiat currency and short-term U.S. Treasuries aiming for a 1:1 on-chain settlement capability. Its price remains close to $1 with stable market cap and trading volume—ideal for fund storage, settlement, and cross-border transfers within crypto markets. Understanding its issuance/redemption mechanisms, reserve transparency, and compliance controls helps assess risks like depegging or counterparty exposure. On Gate, you can buy or withdraw USDC securely by selecting the right network and testing small amounts first; long-term holders should opt for self-custody with robust security settings. When comparing alternatives like USDT, consider regulatory requirements, trading depth, costs, and stay updated on issuer reserve reports and policy changes.

Click to view USDC Fund Flow Ratio

FAQ

What are the key differences between USDC and USDT?

Both USDC and USDT are USD stablecoins, but have different issuers. USDC is jointly issued by Coinbase and Circle with higher transparency and regular audits; USDT is issued by Tether with greater liquidity but relatively lower reserve transparency. Choose based on exchange support and personal preferences—Gate supports trading both.

On which blockchains can you use USDC?

USDC is deployed across major blockchains including Ethereum, Polygon, Arbitrum, Optimism, Solana, among others. While all versions represent the same asset conceptually, cross-chain transfers should use official bridges or exchanges; always confirm your target chain before proceeding. Gate supports multi-chain deposits and withdrawals for USDC.

What can you do with USDC?

USDC is mainly used for stable value storage, payment settlement, and DeFi lending scenarios. You can buy it with fiat on exchanges, deposit it into DeFi platforms for yield, or use it for on-chain payments. Compared to volatile crypto assets, USDC is better suited for holding funds or daily transactions.

Is USDC’s reserve truly reliable?

USDC follows a 100% cash plus short-term U.S. Treasury reserve model with monthly third-party audit reports published publicly—offering higher transparency than some other stablecoins and reducing risk. However, changes in U.S. financial policy may still pose risks; avoid excessive concentration over long periods.

How do you trade or swap USDC on Gate?

On Gate’s platform you can buy USDC directly with fiat currency, exchange other cryptocurrencies for it, or withdraw it to your wallet. Steps are: log in → select trading pair → enter amount → confirm trade. Beginners should start with small amounts to familiarize themselves before making larger trades.

Glossary of Key Terms Related to USDC (USDC)

• Stablecoin: Cryptocurrency pegged to fiat currency value aiming for price stability.
• Fiat Reserve: Dollar or other fiat assets backing the value of stablecoins.
• Compliance Audit: Third-party periodic verification and disclosure of reserve assets.
• On-chain Issuance: Minting/burning tokens via blockchain networks.
• Cross-chain Bridge: Protocols enabling movement of USDC between blockchains.
• Redemption Mechanism: Process for converting USDC back into equivalent fiat currency.

References & Further Reading on USDC (USDC)

• Official Site / Whitepaper:

  • https://www.circle.com/en/usdc
  • https://www.centre.io/usdc
  • https://github.com/centrehq/centre-tokens

• Developer Docs:

  • https://developers.circle.com/stablecoins/docs
  • https://github.com/circlefin/stablecoin-evm
  • https://www.circle.com/en/developers

• Trusted Media / Research:

  • https://www.coindesk.com/learn/what-is-usd-coin-usdc/
  • https://www.investopedia.com/usd-coin-usdc-definition-5218006
  • https://decrypt.co/resources/what-is-usd-coin-usdc