USD Coin USDC Fiat-backed
1 USDC held since September 2018 now buys what $0.75 bought back then — 25% of its purchasing power lost to US inflation. Stablecoin inflation calculator →
About USD Coin
USD Coin (USDC) is the second-largest stablecoin, issued by Circle. Launched in September 2018 through the Centre consortium with Coinbase, it has been governed by Circle alone since 2023, and it is widely used in DeFi, payments and by institutions that want a regulated digital dollar.
USDC is backed by cash and short-term US government debt, most of it held in the Circle Reserve Fund, a government money-market fund managed by BlackRock. Circle publishes monthly reserve attestations and has been listed on the New York Stock Exchange (CRCL) since June 2025. In the EU, Circle was the first global issuer to comply with MiCA, through an e-money license in France.
Its conservative design was tested in March 2023: when Silicon Valley Bank failed, Circle disclosed that $3.3 billion of USDC's reserves were held there, and USDC fell to about $0.87 over a weekend before recovering once US authorities guaranteed the bank's deposits.
Key facts
| Issuer | Circle |
|---|---|
| Type | Fiat-backed |
| Backing | Cash and short-term US Treasuries, mostly in the BlackRock-managed Circle Reserve Fund |
| Launched | September 2018 |
| Regulation | MiCA-compliant in the EU; issued by a publicly listed, US-regulated company |
| Official website | www.circle.com/usdc |
Peg history
Daily price of USDC against its $1 target. Daily data smooths out intraday moves, so the deepest depegs were lower than the chart shows — see the events below.
Notable depegs and incidents
- — Fell to about $0.87 after Circle disclosed $3.3 billion of reserves at the failed Silicon Valley Bank; the peg returned within about three days once US authorities backstopped the bank's deposits.
USDC supply over time
USDC FAQ
Is USDC safe?
USDC is among the most transparent and most regulated stablecoins, with monthly attestations and reserves in cash and Treasuries. Its main weakness showed in 2023: even conservative reserves depend on the banks that hold them, and Circle can freeze tokens.
What backs USDC?
Cash at banks and short-term US Treasuries, mostly through the BlackRock-managed Circle Reserve Fund, attested monthly.
Has USDC ever lost its peg?
March 11, 2023: Fell to about $0.87 after Circle disclosed $3.3 billion of reserves at the failed Silicon Valley Bank; the peg returned within about three days once US authorities backstopped the bank's deposits.
How much value has USDC lost to inflation?
Against the dollar, none — USDC is designed to stay at $1. Against what a dollar buys, about 25% since its launch in September 2018, based on the US consumer price index. Holding a stablecoin protects you from crypto volatility, not from inflation.
Compare USDC
What if you didn't want a peg?
Stablecoins copy the dollar — inflation included. Unstablecoins take the opposite bet: no peg, a fixed or shrinking supply and volatility on the label. See them in the live unstablecoin rankings.
Sources
- Circle — USDC transparency
- Circle — first global stablecoin issuer to comply with MiCA
- Wikipedia — Circle Internet Group
Market data: DefiLlama (hourly). Inflation: US CPI-U from FRED. This page is informational and not financial advice.