USDC operates as an Ethereum ERC-20 token and is also available on several other blockchain platforms such as Polygon.[2][3] 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.[4]
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".[5]
As of 2020, USDC reserves were regularly attested (but not audited) by Grant Thornton, LLP,[6] and as of 2021, the monthly attestations could be found on the Centre Consortium's website.[7]
History
Circle announced USDC on May 15, 2018,[6] and it was subsequently launched in September of the same year by Centre, a consortium formed through a joint venture between Circle and Coinbase.[8]
On March 29, 2021, Visa announced its support for USDC, enabling the cryptocurrency to be used for selling transactions within its payment network.[9]
In July 2022, Circle reported that the circulation of USDC had reached $55 billion.[10]
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.[11] USDC regained its dollar peg four days later.[12]
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.[13]
In February 2024, Circle discontinued USDC on the TRON blockchain in February 2024 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.[14]
According to data compiled by Visa, USDC overtook Tether in stablecoin transaction volume in 2024.[15]
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