2.2 What Is USDC?

USDC (USD Coin) is a stablecoin pegged to the US dollar, issued by Circle in partnership with Coinbase through the Centre Consortium. Like USDT, each USDC token is designed to maintain a value of 1 US dollar.

USDC was launched in 2018 and has positioned itself as the most transparent and regulated stablecoin in the market. It is the second-largest stablecoin by market capitalization and is available for trading on CryptoBazaar.

USDC distinguishes itself through its approach to reserves and transparency. Circle maintains USDC reserves in cash and short-dated US Treasury bonds held at regulated financial institutions. The reserves are audited monthly by independent accounting firms, and the attestation reports are published publicly.

This level of transparency provides users with greater confidence that every USDC token is fully backed by liquid, dollar-denominated assets. Unlike some other stablecoins, USDC reserves do not include commercial paper, corporate bonds, or other potentially illiquid instruments.

Circle, the issuer of USDC, is a registered Money Services Business with the US Financial Crimes Enforcement Network (FinCEN). The company operates under state money transmission licenses across the United States and holds an Electronic Money Institution license in the European Union.

This regulatory framework means USDC is subject to compliance requirements including anti-money laundering (AML) and know-your-customer (KYC) regulations. For traders, this regulatory oversight provides an additional layer of legitimacy and security.