What is USDC?

What is USDC and how does it work?

USD Coin (USDC) is a fully-reserved stablecoin running on many of the world’s leading blockchains and is always redeemable 1:1 for U.S. dollars.

USDC's price is pegged to $1 USD. Its peg mechanism uses a simple 100% collateralization approach. This means that for every 1 USDC in circulation there is $1 USD held in reserve.

USDC was designed from the open-source fiat stablecoin framework developed by Circle and Centre. You can monitor attestation reports on USDC's reserve holdings by checking Circle’s trust and transparency page.

Circle Account and Circle APIs support all native versions of USDC:

Circle Account and Circle APIs also support specific ‘bridged’ versions of USDC:

Why is USDC relevant in the context of Circle APIs?

Since the beginning, we at Circle envisioned a world where “everyday money” such as dollars, euros, yen, etc. could inherit the most powerful features of digital currencies like bitcoin:

  • open, global, connected to anyone and anything on the internet;
  • fast, cheap and secure to transmit.

Representing and storing "money", and processing transfers of "money" are capabilities that more and more businesses require at its core. Taking payments, transacting with partners, engaging in internet commerce and different types of financial transactions - all of these capabilities typically involved representing and storing money in a bank account, and handling transfers via traditional payments processing solutions. From a technology perspective, these solutions are typically closed, regional, hard to obtain, slow and expensive.

Circle APIs integrate with and utilize USDC in order to represent money in an internet-native way. Card (and other types of) payments get settled in USDC on a wallet, as opposed to "traditional" money on a bank account. Businesses can manipulate those funds via modern APIs, and can instantly connect to any other service or infrastructure that also utilizes USDC.

This approach offers developers and entrepreneurs around the world a choice. The choice to build products and commerce in a way that is not only more open, global, faster and cheaper, but also one where the concept of money itself is extensible and programmable.

USDC has already become a critical piece of infrastructure for hundreds of businesses around the world, having been integrated into everything from digital wallets and exchanges, to securities platforms, trade finance systems, payment products, savings and lending, and even games.

🎉 We can't wait to see what you can build!