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View ChartPegged to the value of the US Dollar (USD), USDC is a stablecoin that is supported by assets.
One US dollar in fiat currency or a liquid asset, such as short-term US Treasury bonds held by US financial institutions subject to US regulation, is required to support each USDC token in circulation. With its adoption of the ERC-20 token standard, USDC is now compatible with all apps built on the Ethereum platform. Several other well-known blockchains currently support the coin, such as Tron, Algorand, and Solana.
In times of market instability, cryptocurrency traders have found USDC to be a safe haven due to its predictable price. More efficiently than in traditional finance, USDC allows for the cross-border transfer of value in a stable digital currency.
The vast network of USDC holders and service providers, including crypto trading platforms and decentralized apps (dApps), highlights the value of USDC.
Launched in late 2018, USDC is designed to maintain a stable value unlike other typically volatile cryptocurrencies. But even stablecoins such as USDC can still be prone to mild changes in price.
USDC’s price spiked to an all-time high of $1.19 in May 2019, and noted an all-time low of $0.891848 in May 2021. Changes to supply and demand is the main reason stablecoins move off their $1 peg. During bullish market cycles, demand for stable value assets like USDC drops. That causes the price of USDC and other U.S. dollar-backed stablecoins to fall beneath one dollar. Overall, though, USD coin has maintained long periods of stability at $1.
There is no maximum or total supply of USD coin, as new tokens are issued based on demand.
When a user redeems USDC for $1, the team burns (permanently removes) the appropriate amount of USD coin from circulation, and funds from underlying reserves are transferred to the client’s external bank.
There is no mining mechanism to add more USDC to circulation, unlike Bitcoin and other cryptocurrencies. In its place, fresh USDC coins are created whenever individuals or companies fund their Circle accounts with US government-backed cash. By trading USD for USDC, one can build a 1:1 replica of that asset whose transaction records are stored and maintained using the efficiency of blockchain technology.
In contrast, USDC tokens are burnt when USD is deposited in order to maintain a constant ratio of tokens in circulation to fiat currency reserves.
Circle keeps the value of USDC tied to the value of USD by holding the equivalent amount of USD in cash and short-term U.S. Treasuries at the time of issuance. This means that USDC is less susceptible to price swings during economic downturns than other cryptocurrencies.
Even in the face of tremendous market volatility, Circle’s peg to the US dollar has remained stable thanks to the one-for-one cash holdings that support its token.
Dollar State Capital (USDC) has lately asserted that it had solely assets backed by the government, while having held modest quantities of commercial paper in the past. This sort of short-term debt is issued by firms to satisfy their more immediate responsibilities.
International accounting powerhouse Grant Thornton audits Circle’s holdings as part of the company’s registration as a money service corporation in the United States.
1.A user sends US dollars to the coin issuer’s bank account.
2.The issuer uses a USD Coin smart contract to create the equivalent amount of USD Coin.
3.The newly minted USD Coins are sent to the user and the substituted US dollars are held in a reserve.
The redemption of USD Coins for US Dollars follows the process listed above but in reverse.
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TradeUSDC (USDC) is a fully collateralized, regulated US Dollar stablecoin designed to maintain price stability through a 1:1 asset peg. For every 1 USDC issued, its issuer Circle holds one US Dollar or equivalent asset in segregated accounts with regulated US financial institutions. The reserve portfolio consists primarily of two asset classes: 1. Cash and bank demand deposits; 2. Highly liquid short-term US Treasury bills (with maturities of 90 days or less) and overnight US Treasury repurchase agreements held via the Circle Reserve Fund. This bankruptcy-remote, liquid backing ensures that institutional and retail investors can redeem USDC for USD fiat at a 1:1 ratio at any time.
USDC (USDC) is widely recognized as one of the most compliant and transparent stablecoins in the digital asset market. Its issuer, Circle, is registered as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) and holds Money Transmitter Licenses (MTLs) across the majority of US states. For transparency, Circle publishes monthly third-party attestation reports conducted by top independent accounting firms (such as Deloitte), disclosing the exact asset breakdown and fair market value of USDC reserves. Furthermore, USDC aligns with global regulatory standards like the EU's MiCA, providing robust legal protection and fund segregation for holders.
While USDC (USDC) and USDT (Tether) are the two leading USD stablecoins, they serve distinct roles in the market: 1. Regulation & Transparency: USDC maintains stricter regulatory compliance, higher asset transparency, and monthly reserve attestations, making it the preferred choice for US institutional investors and top DeFi protocols. USDT offers massive global liquidity but has faced historical debates regarding reserve disclosures. 2. Primary Use Cases: USDT leads in Centralized Exchange (CEX) spot and perpetual liquidity; USDC dominates cross-border settlements, institutional clearing, and compliant DeFi lending. Summary: Choose USDC for maximum regulatory safety and institutional transparency, or USDT for broader spot trading pair liquidity.
USDC (USDC) serves a dual role in crypto derivatives trading as a dollar-pegged settlement asset and a compliant margin collateral. On trading platforms offering USDC-Margined Perpetual Futures (such as BTCC), traders can deposit USDC as direct collateral to open long or short positions on Bitcoin, Ethereum, and other digital assets. Because USDC is pegged to the US Dollar, using it as margin eliminates the collateral volatility risk associated with crypto-margined contracts (like BTC or ETH collateral), preventing unexpected margin calls or liquidations and making PnL calculations straightforward.
When using USDC for crypto futures arbitrage or hedging on platforms like BTCC, configuring Take-Profit (TP) and Stop-Loss (SL) orders is vital for managing risk and protecting capital against market volatility or rare de-pegging events. 1. Margin Trading Hedging: When holding a leveraged long/short position with USDC margin, place TP/SL orders based on key technical support and resistance levels of the underlying asset (e.g., BTC/USDT), capping max trade risk at 1%-2% of total account capital. 2. De-peg Risk Management: In the rare event of a USDC peg deviation, traders can utilize cross-exchange arbitrage or hedge positions while deploying Trailing Stop orders to lock in accrued arbitrage profits.
According to real-time market data, USDC (USDC) is currently trading at $0.999891 with a total market capitalization of $72.177012B and a 24-hour global trading volume of $9.195027B. The current circulating supply stands at 72.19B out of a maximum supply of ∞. You can monitor live price action, order book depth, and market liquidity for USDC spot and perpetual futures markets on the BTCC trading platform or mobile app.
As a USD-backed stablecoin, USDC (USDC) price stability and adoption are driven by four core market dynamics: 1. Reserve Asset Safety & Yields: The financial health of custodian banks and prevailing US Treasury yields; 2. Global Regulation: US stablecoin legislation milestones, regulatory clarity, and MiCA compliance; 3. Institutional Capital Flows: Inflows from traditional finance, DeFi Total Value Locked (TVL) metrics, and net mint/burn activity; 4. Crypto Market Sentiment: During broader market downturns, traders flight to quality by rotating risk assets into USDC, driving up stablecoin demand.
Historical market data indicates that USDC (USDC) reached an all-time high (ATH) of $2.349556 on 2021-11-16 07:40 and an all-time low (ATL) of $0.8774 on 2023-03-11 06:45. The most notable historical de-peg event for USDC occurred in March 2023 following the collapse of Silicon Valley Bank (SVB), where Circle held a portion of its cash reserves, temporarily dipping the price near $0.87. Once Circle confirmed full reserve coverage and resumed 1:1 USD redemptions, the price rapidly re-pegged to $1.00, demonstrating the resilience of its reserve redemption mechanism.
To monitor the peg health and liquidity of USDC (USDC), traders use three primary methods: 1. Peg Deviation: Track USDC vs. USDT or USD trading pairs on BTCC charts to ensure price fluctuates within the normal $0.999–$1.001 band; 2. On-Chain Data: Use analytics platforms like Dune Analytics or Etherscan to track Circle's daily minting/burning volumes, whale transfers, and reserve wallet addresses; 3. Order Book Liquidity: Analyze order book bid/ask depth and slippage on BTCC. Combining technical indicators like Moving Averages (MA) and RSI helps spot any temporary liquidity anomalies in real time.
During crypto bear markets or price corrections, traders can utilize USDC as stable margin on BTCC to profit from falling prices via short selling: 1. Transfer Collateral: Move your USDC into your futures account; 2. Enter Short Position: Select a bearish crypto asset (e.g., BTC or ETH) and click 'Sell / Short'; 3. Lock in Profits: Close the position when the asset reaches your target price to capture the profit margin. Because settlements are denominated in stable USDC, your gains are locked in USD value, effectively hedging your portfolio against falling crypto asset prices.
Yes, BTCC allows traders to use USDC as margin to trade high-leverage perpetual futures and execute leverage arbitrage (subject to platform risk control limits). The main benefit of using USDC as collateral is that the margin value remains stable, eliminating collateral depreciation risks caused by underlying market fluctuations. However, leverage magnifies both potential gains and losses. Beginners trading with USDC margin should start with lower leverage multipliers (e.g., 2x to 10x) and always employ Stop-Loss orders to protect account balance.
New users on BTCC can instantly switch to 'Demo Trading' mode directly from the trading interface. The system credits your demo account with 100,000 USDT/USDC in virtual funds. This allows you to test real-time order book liquidity, practice entering long/short positions using USDC as margin, test TP/SL risk management strategies, and familiarize yourself with crypto derivatives execution without risking real capital.
Getting started with USDC on BTCC takes four simple steps: 1. Create an Account: Sign up on the BTCC website or mobile app and complete identity verification (KYC); 2. Deposit or Buy: Go to 'Buy Crypto' to purchase USDC using a credit card/bank transfer, or deposit USDC directly from an external wallet via on-chain transfer; 3. Transfer Funds: Move USDC from your Spot account to your Futures account; 4. Execute Trades: Select a USDC-margined futures pair (e.g., BTC/USDC), configure your leverage and margin mode, select 'Buy / Long' or 'Sell / Short', set your TP/SL levels, and confirm the order.
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. The content expressed on this page is not intended to be and shall not be construed as an endorsement by BTCC regarding the reliability or accuracy of such content. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance, and consult an independent financial adviser before making any investment. This material should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. BTCC is not responsible for any losses you may incur. For more information, please refer to our Terms of Use and Risk Warning. Please also note that data relating to the above-mentioned cryptocurrency presented here (such as its current live price) are based on third-party sources. They are presented to you on an “as is” basis and for informational purposes only, without representation or warranty of any kind. Links provided to third-party sites are also not under BTCC’s control. BTCC is not responsible for the reliability or accuracy of such third-party sites or their contents.