USD Coin (USDC)
The Boring One
The Honda Civic of stablecoins. Boring, reliable, does what it says.
The 10-second version
USDC is the safest stablecoin for most people. It’s backed by actual US dollars and short-term Treasuries, audited every month, and run by Circle, a company that actually talks to regulators instead of hiding from them.
If you want boring and reliable, this is it.
What it actually is
USDC is a digital dollar. One USDC equals one US dollar. Always. That’s the whole point.
Circle, the company behind it, holds the equivalent amount in cash and short-term US Treasury bonds. When you buy 100 USDC, Circle has $100 sitting in regulated financial institutions. When you sell it back, they burn the token and give you real dollars.
Every month, Grant Thornton (a major accounting firm) publishes an attestation report confirming the reserves match the tokens in circulation. You can read these reports yourself. They’re public.
Why people use it
It’s the default. Most crypto apps, exchanges, and DeFi protocols support USDC. If you’re getting paid in crypto, paying someone else, or just parking dollars on-chain, USDC is usually the easiest option.
It’s safe. Circle is a US company with real regulatory relationships. They’ve registered with FinCEN, comply with US sanctions, and are building toward full banking integration. When regulators came knocking, Circle opened the door instead of moving to the Cayman Islands.
It works everywhere. USDC runs on basically every major blockchain: Ethereum, Solana, Base, Arbitrum, Polygon, Avalanche, and more. Transferring between chains is getting easier too.
You can earn yield. While USDC itself doesn’t pay interest, Coinbase offers 4.5% APY on USDC held in their platform. That’s more than most savings accounts, and you’re holding the same stable asset.
The catch
USDC is boring. It doesn’t have the highest yield. It’s not decentralized. Circle can freeze addresses if law enforcement asks (and they have).
If you want maximum censorship resistance, look at DAI. If you want higher yields, look at riskier options like USDe. But if you want the most reliable, regulated, boring stablecoin that just works, USDC is the answer.
Also: in March 2023, USDC briefly dropped to $0.87 when Silicon Valley Bank collapsed. Circle had $3.3 billion of reserves stuck there. The peg recovered within days when the government backstopped the bank. It was a stress test, and USDC passed. But it was a reminder that “safe” doesn’t mean “risk-free.”
Our take
USDC is the default recommendation for most people.
If you’re new to stablecoins, start here. If you’re sending money internationally, start here. If you want to hold dollars on-chain without thinking about it, start here.
It’s not the most exciting option. But when it comes to money, boring is good.
How to get it
Easiest: Buy on Coinbase. Zero fees to convert USD to USDC. You can hold it there and earn 4.5% APY, or transfer to your own wallet.
Also easy: Buy on Kraken, Gemini, or most major exchanges.
Already have crypto? Swap on Uniswap, Jupiter (Solana), or any DEX. Make sure you’re getting real USDC, not a fake token.
Want it on a specific chain? USDC is native on Ethereum, Solana, Base, Arbitrum, and others. Check which chain has the lowest fees for your use case. Base and Solana are usually cheapest.