Digital market intelligence
First Edition · Original explainers · Historical examples
Home / Asset library / USDC
Whitepaper read

USD Coin

USDC · Circle

UtilityDollar-pegged stablecoin issued by Circle — for payments and settlement.

What it is

USDC is a United States dollar-pegged stablecoin issued by Circle, redeemable one-to-one for dollars and backed by reserves of cash and short-dated US Treasury assets held in segregated accounts.

Technology & consensus

USDC is issued by smart contracts on many supported blockchains through Circle Mint; deposits of United States dollars mint tokens one-to-one and redemptions burn tokens one-to-one, with cross-chain transfers handled by the burn-and-mint Cross-Chain Transfer Protocol.

Token utility

USDC serves as a dollar-denominated payment and settlement medium, a store of value within crypto markets, and programmable money for applications built on supported blockchains.

Key risks & notes

Counterparty risk rests on Circle as issuer and on the reserve structure rather than any chain-level mechanism; regulatory and banking-access risk apply, including dependence on licensed money-transmitter status and MiCAR compliance.

Primary source

Read the official whitepaper →

Research status

Classification: Whitepaper read · Researched · Source material: official project documents only.

Machine-readable summary →

👁️ Evidence dossier

Verification classClass AFORA-01 scale — verification, not a quality ranking
Claim type · Fiat-backed stablecoin
What does the holder own?

Title, redemption claim, fractional ownership, reserve exposure — or just narrative.

USDC is a redeemable claim on United States dollars at one-to-one, not an equity share or ownership title. Circle records issued stablecoins as a liability (deposits from stablecoin holders) on its balance sheet.

high confidence

Evidence: [1] · [2]

Verified
Who holds the underlying?

Needs an identifiable custodian or entity — not a wallet address or a label.

Reserves are held in segregated accounts. Most of the reserve sits in the Circle Reserve Fund, an SEC-registered government money market fund managed by BlackRock, with fund assets in the custody of The Bank of New York Mellon; the remainder is cash held at banks.

high confidence

Evidence: [1] · [2]

Verified
How are reserves checked?

Custodian records → inventory → third-party audit → supply reconciliation.

A Big Four firm examines Circle's assertion monthly under AICPA attestation standards that reserve fair value covers USDC in circulation, with two report dates per month per NYDFS guidance, plus weekly public reserve-composition and mint-burn disclosures. Circle identifies Deloitte and Touche LLP as its independent auditor since fiscal year 2022.

high confidence

Evidence: [1] · [2]

Verified
How does redemption work?

Eligibility, minimums, fees, KYC, settlement — and what happens to the token.

Circle Mint customers redeem one-to-one through their accounts with KYC, in tiered structures with defined processing times and fee thresholds. Any holder can also redeem directly from Circle Internet Financial Europe SAS as redeemer of last resort at no fee, after identity, KYC, and sanctions screening; direct issuance and redemption is institution-focused, with retail users routed to secondary markets.

high confidence

Evidence: [1] · [2]

Verified
Who is liable if redemption fails?

A legally accountable entity and jurisdiction — not a DAO label.

The legal obligors are Circle Internet Financial, LLC for non-EEA issuance (a licensed money transmitter in 46 US states plus the District of Columbia and Puerto Rico, registered with FinCEN) and Circle Internet Financial Europe SAS in the EEA under the Markets in Crypto-Assets Regulation, both wholly owned subsidiaries of Circle Internet Group, Inc., a Delaware corporation.

high confidence

Evidence: [1] · [2]

Verified

❔ UNVERIFIED means not yet researched — not disproven. Rows marked “researched” were investigated and independent evidence was not found. Coverage expands as FORTUNA verifies. This dossier was researched 2026-09-15. Method: FORA-01 Asset Claim Verification Protocol.

❔ Frequently asked questions

What is USD Coin (USDC)?

USDC is a United States dollar-pegged stablecoin issued by Circle, redeemable one-to-one for dollars and backed by reserves of cash and short-dated US Treasury assets held in segregated accounts.

What does the holder own?

USDC is a redeemable claim on United States dollars at one-to-one, not an equity share or ownership title. Circle records issued stablecoins as a liability (deposits from stablecoin holders) on its balance sheet.

What is USD Coin's verification status?

USD Coin (USDC) carries verification class A (Class A): every applicable FORA-01 question is VERIFIED — a full verification chain. What would change it: A status change would require new evidence — a status never changes from reinterpreting old evidence.

← Back to the asset library