- USDC is a stablecoin issued by Circle, fully reserved by cash and cash equivalents for 1:1 redeemability with US dollars. It enables fast, low-cost, and accessible global transactions via blockchain technology.
- USDC bridges traditional finance with blockchain to enhance global economic access and opportunity. It facilitates peer-to-peer transfers, cross-border remittances, payments, savings, and DeFi trading.
- USDC is widely accessible on over 100 cryptocurrency exchanges, and natively issued on more than 15 blockchain networks.
In the world of financial technology, stablecoins are an innovation that bridge the gap between traditional finance and the cryptocurrency ecosystem. Among stablecoins, USDC, which is issued by Circle, is the world's largest regulated digital dollar.
This article delves into the history, mechanics, and utility of USDC — exploring its many features, benefits, and use cases.
USDC overview
USDC is the world’s largest regulated, fully reserved digital dollar. It’s backed 100% by highly liquid cash and cash-equivalent assets, and is redeemable 1:1 for US dollars. Leveraging the power of the internet and blockchain technology, USDC can move across borders quickly with low fees and is available to individuals with an internet connection in more than 180 countries around the world.
Because USDC operates on blockchain networks, transactions are processed rapidly and efficiently without the need for traditional banking intermediaries. Blockchains function continuously, 24/7, eliminating delays associated with bank operating hours, holidays, or cross-border settlements. This constant availability allows for near-instant transfer of funds at any time, reducing both the time and cost typically involved in moving money globally.
USDC is designed to be secure, stable, frictionless, and open. At a glance, USDC:
- Moves faster and cheaper than fiat money
- Offers near-instant 24/7 availability in more than 180 countries
- Serves as a stable source of value that is fully reserved
- Adheres to stringent US regulatory1 standards
To better understand what USDC is and how it works, let’s first take a closer look at stablecoins.
What is a stablecoin?
Stablecoins are a type of digital asset designed to maintain a constant value. Because their value does not fluctuate like most other types of cryptocurrencies, stablecoins have become one of the world's most important and widely used digital assets. The purpose of stablecoins is to mimic the functionality of fiat currencies, but to gain the efficiency, mobility, and utility of cryptocurrencies. In effect, stablecoins offer the benefits of internet-scale digital money.
Because they are built on blockchain technology, stablecoins like USDC enable transactions that are confirmed on the blockchain within minutes, and the efficiency of on-chain confirmation enables stablecoin transactions to avoid the high costs associated with banks and financial intermediaries. Blockchain's 24/7 operational nature allows users to transfer funds anytime, anywhere, leading to faster transaction times compared to traditional banking systems.
A truly well-designed and high-utility stablecoin is available 24/7, consistently stable in price, and backed 1:1 with transparent and safe reserves.
With these qualities, today, stablecoins such as USDC are commonly used as a store of value, and to facilitate payments, remittances, and financial services across both centralized and decentralized finance (DeFi) sectors.
Looking at just one use case, stablecoins can offer potential advantages over traditional payment methods:
Understanding different types of stablecoins
There are several different ways that stablecoins maintain price stability — generally falling into four categories:
- Fiat-backed stablecoins: These stablecoins are backed by reserves consisting of highly liquid cash and cash-equivalent assets. They are widely adopted due to their security, stability, and regulatory compliance. For example, USDC is a fiat-backed stablecoin, fully backed by reserves of real-world assets, and issued by Circle.1
- Commodity-backed stablecoins: These stablecoins are backed by physical assets such as precious metals (e.g., gold), oil, or real estate, among others. Commodity-backed stablecoins allow users to digitally own and transfer tokens that represent real-world commodities, providing a way to hold, trade, and invest in tangible assets through blockchain technology. PAX Gold (PAXG) is an example of a commodity-backed stablecoin.
- Crypto-backed stablecoins: These stablecoins are backed by other cryptocurrencies. Users deposit and lock their cryptocurrencies on a given platform as collateral to mint, or create, stablecoins. Crypto-backed stablecoins are often used within the DeFi ecosystem and offer more flexibility in terms of how users collateralize and mint them, but come with higher volatility risks compared to fiat-backed stablecoins. DAI, for example, is a stablecoin pegged to the US dollar but backed by a pool of cryptocurrencies like ether (ETH) and even other stablecoins like USDC on the MakerDAO platform.
- Algorithmic stablecoins: Instead of being backed by any form of collateral, these stablecoins use algorithms to control supply and demand to maintain price stability. Algorithmic stablecoins usually make use of a two-token system: one token (the algorithmic stablecoin) is designed to maintain a stable value, and the other token has a variable value determined by market forces. The value of the variable token is directly linked to the stablecoin's value through a mint-and-burn process that adjusts the supply of the algorithmic stablecoin based on market conditions. When the stablecoin's price rises above its target (e.g., above $1), users are incentivized via an arbitrage opportunity to burn their variable tokens to mint new stablecoins, increasing the stablecoin's supply and bringing its price back down toward the target. Conversely, when the stablecoin's price falls below the target, users can burn the stablecoins and buy variable tokens, reducing the stablecoin's supply and pushing its price back up. This dynamic theoretically helps maintain the algorithmic stablecoin's value. However, due to their complete reliance on arbitrage and algorithmic adjustments, algorithmic stablecoins are highly susceptible to market fluctuations and systemic risks. TerraUSD (UST) is an example of a now-defunct algorithmic stablecoin.
Fiat-backed stablecoins, like USDC, are the most widely adopted form of stablecoins. USDC, fully backed by cash and cash equivalents such as short-term US Treasuries, is known for its high level of transparency and attestation of these reserves (which we’ll discuss shortly), an area where many other fiat-backed stablecoin providers fall short.
The history of USDC
Circle initially launched USDC on the Ethereum blockchain in September 2018. The underlying goal was to combine the stability of the US dollar with the flexibility and speed of the internet.
Circle independently manages USDC's operations, including its expansion across multiple blockchains. Over the years, USDC has expanded its presence beyond Ethereum to include Solana, Arbitrum, and Base, among many others. Today, USDC is natively offered on more than 15 blockchains, with plans to offer it on additional chains in the future This expansion has been facilitated by the introduction of blockchain-native USDC and the Cross-Chain Transfer Protocol (CCTP), a tool that aims to reduce fragmentation and improve the movement of USDC across different blockchain ecosystems.
USDC's growth has been marked by its commitment to transparency and regulatory1 compliance, with regular attestations from an independent accounting firm and reserves held in the Circle Reserve Fund, an SEC-regulated money market fund. This approach has helped USDC gain trust and widespread adoption in the cryptocurrency market.
What sets USDC apart from other stablecoins?
Some of the most important factors that differentiate USDC from other stablecoins include its transparent reserves, regulatory1 compliance, broad network of infrastructure partners, and cross-chain interoperability.
Transparent reserves and attestations
USDC places strong emphasis on transparency and attestations, which provides confidence in its backing.
The majority of USDC reserves are held in the Circle Reserve Fund (USDXX), a government money market fund managed by a leading global asset manager. The Circle Reserve Fund contains cash, short-dated US Treasuries, and overnight US Treasury repurchase agreements with leading global banks — all commonly used assets in money market funds because of their liquidity and stability. For utmost transparency in USDC’s backing, daily, independent, third-party reporting on the portfolio of funds that support USDC is publicly available.
USDC reserves also undergo monthly attestations by an independent accounting firm. The reports (which are also publicly available) comply with the attestation standards outlined by the American Institute of Certified Public Accountants (AICPA). This rigorous transparency provides assurance that every USDC token in circulation is backed by an equivalent amount of fiat currency, fostering trust and reliability among users and regulators.
Regulatory compliance
Circle takes a comprehensive and proactive approach to make sure USDC complies with regulatory1 standards in every possible jurisdiction. Circle invests heavily in people, processes, and technologies to build a dynamic company that conforms to emerging global regulatory regimes while staying abreast of technological developments. It is this dedication to meeting regulatory requirements that allows Circle to focus on building a frictionless bedrock for stablecoins, secure protocols, and trusted blockchain solutions.
Here are some examples of how Circle ensures regulatory1 compliance for USDC in key jurisdictions:
Circle regulatory1 compliance in the US
In the United States, Circle operates under state money transmission laws and USDC is regulated1 as an electronic “stored value” instrument. Circle is comprehensively licensed as a state supervised money transmission and electronic stored value company in 48 states. Circle was the first company to receive a Bitlicense from the New York State Department of Financial Services (NYDFS) in 2015, and remain a registered Money Services Business (MSB) conforming with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) guidance on combating illicit financial activity.
Circle regulatory compliance in Europe
Circle's issuance of USDC and EURC in the European Economic Area (EEA) is in compliance with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework. MiCA sets regulatory requirements for crypto-asset issuers, crypto-asset service providers (CASPs), and stablecoin issuers. Circle France is the sole issuer of EURC and a co-issuer of USDC alongside Circle LLC. Circle France holds an e-money institution (EMI) license from the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the French banking regulatory authority, allowing passporting of services to all EEA countries. This compliance framework ensures that USDC meets relevant regulatory1 standards, fostering trust and reliability in the European market.
Circle’s regulatory compliance in Singapore
USDC's regulation in Singapore is governed by the Monetary Authority of Singapore (MAS) under the Payment Services Act 2019. Circle obtained a Major Payment Institution (MPI) license from MAS in November 2022, which allows Circle Singapore to provide digital payment token services, cross-border money transfer services, and domestic money transfer services within Singapore. This license requires Circle to adhere to various regulatory1 reporting obligations, including monthly, semi-annual, and annual reports. These efforts help maintain compliance with the stringent regulatory1 standards set by MAS, and build trust among users and regulators in Singapore.
Infrastructure partners
Circle, the issuer of USDC, has one of the largest relationship networks with banks, fintechs, and crypto trading platforms across the globe. This global network helps enable partners and end users alike to easily convert fiat money to USDC and back again with fiat-to-crypto and crypto-to-fiat on- and off-ramps.
Cross-chain interoperability
USDC has been natively deployed across more than 15 leading blockchains, significantly enhancing its utility and accessibility across the blockchain landscape. This extensive multi-chain presence allows users to leverage USDC's stability and reliability across various networks, facilitating seamless transactions and interactions within diverse on-chain ecosystems. USDC's widespread availability enables a consistent stablecoin experience across various networks.
USDC's cross-chain interoperability efforts are advanced by the Cross-Chain Transfer Protocol (CCTP), a permissionless on-chain utility that facilitates the transfer of USDC across various blockchain networks. The CCTP operates by burning native USDC on the source chain and minting an equivalent amount on the destination chain, effectively "teleporting" native USDC between blockchains. This method aims to reduce liquidity fragmentation and enhance security of cross-chain transfers.
CCTP's design is composable and enables developers to build additional functionalities beyond just transferring USDC. Developers can create flows where, for example, USDC is transferred across chains and automatically deposited into DeFi lending pools, providing a seamless user experience. By integrating CCTP, applications can offer capital-efficient and secure cross-chain transfers, unifying liquidity across different blockchain ecosystems and simplifying the user experience. This robust framework positions USDC as a universal liquidity layer, fostering the development of novel cross-chain applications in trading, lending, payments, and more.
What can I do with USDC?
USDC offers a wide range of practical use cases, making it a versatile tool for individuals, businesses, and developers. Here are some key use cases for USDC:
Send
USDC's high speed and low cost make it an ideal solution for sending money quickly and cheaply, bypassing the delays and high fees associated with traditional financial systems.
Peer-to-peer (P2P) transfers and cross-border remittances
USDC facilitates direct peer-to-peer (P2P) transfers by allowing individuals to send and receive digital dollars without intermediaries. This streamlines personal transactions, enabling near-instant and secure movement of funds between parties in many regions across the world, and enhances accessibility for those without access to traditional banking services.
In particular, USDC’s transferability helps optimize cross-border transactions and remittances. Traditional international transfers are slow and costly, with high fees and long settlement times. USDC enables fast, low-cost, cross-border transactions that settle within seconds, across many regions globally. USDC offers a more efficient and transparent alternative to legacy financial systems, making it valuable for remittances and global commerce.
Financial aid and donations
USDC is also a viable option for financial aid and donations, particularly in scenarios requiring rapid and reliable disbursement of funds. NGOs, businesses, and governments can use USDC to provide aid for disaster relief, social causes, and support for underserved populations. For example, during COVID and continuing on to this day, NGOs have been using USDC to send critical funds to healthcare workers in Venezuela, enabling them to access financial support quickly and efficiently.
USDC is an ideal solution for delivering aid to those in need because it can facilitate fast, low-cost, cross-border transactions and enable funds to reach recipients without the delays and high fees of traditional payment methods. This capability is especially beneficial in regions with limited access to traditional financial services, providing a stable and accessible digital dollar that can be used for essential needs.
Spend
Because of USDC's value stability and target parity with the US dollar, it is ideal for a wide range of payment and transaction needs, from everyday purchases and online shopping to enterprise payments — offering significant advantages in speed, cost efficiency, and transparency.
Payments and transactions
Due to its stability and 1:1 redeemability for US dollars, USDC is a widely used option for payments and transactions. It is accepted by merchants around the world and can be used for everyday purchases, online shopping, and point-of-sale transactions in physical stores (like this restaurant). Loyalty programs are already integrating USDC as a way to enhance user engagement and streamline transactions.
USDC’s integration with various payment platforms and e-commerce solutions makes it a flexible option for both consumers and businesses. Whether splitting a bill with a friend, booking travel, or redeeming a digital coupon, USDC allows for seamless, near-instant transactions.
See how Solana Pay is helping bring the power of USDC to retail transactions.
Save
Many people take basic financial services like access to savings accounts for granted. But according to the World Bank, 1.4 billion people in the world are “unbanked,” and 1.7 billion people are “underbanked” — meaning they have no or limited access to traditional financial services like a bank account. However, many of these individuals have access to internet-connected devices such as laptops, tablets, and smartphones, which enable them to use digital wallets. USDC allows individuals with an internet connection and a digital wallet to access and save digital dollars. This capability positions USDC to significantly enhance global financial inclusion by providing millions of people with digital dollars to use in global commerce.
USDC can be particularly attractive as a tool for saving because it can be redeemed 1:1 for US dollars — offering stability that may be lacking in some regions and with certain fiat currencies across the globe. This stability makes it an attractive option for individuals looking to avoid the volatility of other crypto and fiat currencies.
Discover how partners are leveraging USDC to provide access to digital dollars in various regions.
Trade
While many USDC use cases entail converting fiat currencies to USDC and back again, there are also a wide variety of applications for these digital dollars such as borrowing, lending, trading, and investing in their native digital format, particularly across the decentralized finance (DeFi) ecosystem, a collection of thousands of blockchain-powered decentralized applications (dApps).
As a stablecoin designed to maintain 1:1 value to the US dollar, USDC provides a stable medium of exchange and store of value for DeFi participants seeking to engage with financial services without the need for traditional intermediaries.
Note: It is important for users to be aware of the associated risks and regulatory considerations when interacting with DeFi protocols.
Enjoy the benefits of USDC in innovative dApps
USDC is a form of programmable money that enables developers to build applications allowing end-users to send, spend, save, and trade USDC. Developers can leverage USDC (and Circle’s other powerful development tools) to create applications that benefit from the stability of a digital dollar, aiming for more predictable value in transactions. The open-source nature of USDC fosters innovation and enables developers to enhance the functionality and utility of all kinds of decentralized apps (dApps) for the benefit of users around the world.
These diverse use cases make USDC a powerful and flexible digital asset, catering to a variety of needs in both personal and professional contexts.
USDC blockchain integration and interoperability
Circle aims to make USDC available across multiple blockchain networks to enhance its utility and accessibility. Because USDC exists and operates natively on multiple major blockchains, it seamlessly integrates into most on-chain ecosystems. As previously noted, the Cross-Chain Transfer Protocol (CCTP) enables USDC to flow securely and seamlessly between these various blockchains as needed by burning and minting tokens on each chain natively, and has been integrated into some of the most popular wallets and bridges.
These measures add up to make it easier to access and use USDC across a variety of networks and dApps. Whether you’re minting an NFT on Ethereum, sending microtransactions on Solana, or using DeFi tools on Avalanche, USDC is never far out of reach.
Which blockchains support native USDC?
USDC is a multi-chain digital dollar natively issued on more than 15 leading blockchains (including Avalanche, Ethereum, Solana, and many more). Below is a list of blockchains where you can find native USDC:
USDC on Ethereum
USDC was initially issued and available on the Ethereum blockchain, and the network remains home to the majority of the USDC supply. As an ERC-20 token, USDC on Ethereum is fully compatible with the entire ecosystem of Ethereum-based dApps including decentralized exchanges (DEXs) and other DeFi platforms.
USDC on Base
Base is a Layer-2 (L2) blockchain scaling solution built atop the Ethereum network and designed to offer extra scalability. USDC on Base leverages the benefits of Ethereum’s underlying security mechanisms while offering increased speeds and lower costs compared to Ethereum’s base layer. As an Ethereum L2, Base utilizes Ethereum’s existing token standards for interoperability (i.e., USDC on Base is also an ERC-20 token).
USDC on Solana
Solana is a highly scalable blockchain known for its high-speed, low-cost transactions. USDC on Solana benefits from the network’s ability to process thousands of transactions per second with low costs and near-instant finality. USDC on Solana is issued as a Solana Program Library (SPL) token, providing full compatibility with the broader Solana ecosystem.
USDC on Arbitrum
Arbitrum is another Layer-2 scaling solution for Ethereum that enhances transaction throughput and significantly lowers costs. USDC on Arbitrum lets you interact with Ethereum dApps using USDC while avoiding higher gas fees associated with Ethereum’s mainnet. Like other Ethereum L2s, Arbitrum uses the same ERC-20 token standard, meaning USDC is natively compatible with the Arbitrum ecosystem.
USDC on Avalanche
Known for its speed and low fees, Avalanche is a popular choice for DeFi and NFT platforms. USDC on Avalanche allows users to move funds quickly and cheaply on another fast, powerful blockchain network. USDC on Avalanche adheres to the ARC-20 token standard, meaning it’s natively compatible with Avalanche-based platforms and dApps.
USDC on Polygon PoS
Polygon PoS is a scalable proof-of-stake (PoS) blockchain with fast settlement times and low costs. Polygon PoS is a sidechain to Ethereum, meaning it runs parallel to Ethereum — processing Ethereum transactions using its own independent security mechanism. USDC on Polygon offers users an Ethereum-compatible experience with reduced gas fees, making it ideal for dApps that require fast, affordable transactions. USDC on Polygon PoS is issued using the widely adopted ERC-20 token standard.
USDC on Noble
Noble is an application-specific blockchain purpose-built for native asset issuance for the Cosmos ecosystem — which includes the Cosmos network itself, as well as other blockchains connected via the popular Inter-Blockchain Communication (IBC) framework. USDC is made natively available to the Cosmos ecosystem via Noble, and can be easily bridged to other networks in the Cosmos ecosystem via the IBC protocol.
USDC on NEAR
NEAR is a high-performance blockchain featuring a unique scaling solution based on “sharding” to deliver low-cost transactions that can settle in seconds. USDC on NEAR is natively issued using the NEP-141 token standard that makes USDC compatible with the broader NEAR ecosystem.
USDC on Stellar
The Stellar network is a decentralized, fast, scalable, and sustainable blockchain built for financial products and services — focusing on cross-border payments and financial inclusion. By making USDC natively available on Stellar, developers and businesses can easily integrate USDC into Stellar-based apps and services, and users can interact with USDC just like any other Stellar-based asset.
USDC on Optimism
Optimism is another Layer-2 scaling solution for Ethereum designed to reduce transaction fees and increase speed. USDC on Optimism allows you to perform transactions and interact with Ethereum’s dApp ecosystem while benefiting from the scalability and throughput of Optimism. In line with other Ethereum L2s, USDC on Optimism adheres to the ERC-20 token standard.
USDC on Algorand
Algorand is a scalable blockchain well-suited for large-scale financial applications. USDC facilitates the movement of digital dollars on the Algorand blockchain, offering potential benefits in speed and cost. USDC on Algorand is issued using the Algorand Standard Asset (ASA) token standard for easy integration with the broader Algorand ecosystem.
USDC on Sui
The Sui blockchain offers fast, secure, scalable, and affordable infrastructure for developers building on-chain dApps. Sui also represents the first blockchain based on the Move programming language to support native USDC. Issued using Sui’s RegulatedCoin token standard, USDC on Sui is easily available to users, businesses, and developers across the Sui ecosystem.
USDC on Celo
Celo is a mobile-first blockchain platform focused on increasing financial inclusion. Celo is also an EVM-compatible blockchain, which means USDC is issued on Celo using the ERC-20 token standard. USDC on Celo enables users to access decentralized financial services directly from their mobile devices, promoting easy and cost-effective transactions, especially in developing regions.
USDC on Polkadot
Polkadot is a network of many independent blockchains, also known as parachains, which quickly process transactions in parallel to the Polkadot mainnet. USDC is natively issued on the Polkadot Asset Hub — a common-good parachain that’s specifically designed for asset issuance and transfers. From there, it’s easy to use the Cross-Consensus Message (XCM) protocol to transfer USDC from the Polkadot Asset Hub to parachains across the Polkadot ecosystem.
USDC on Hedera
Hedera is an enterprise-grade blockchain designed to provide fast transactions and high-performance throughput. USDC on Hedera is easily accessible to users, businesses, and developers on Hedera’s institutional blockchain.
USDC on zkSync
zkSync is an L2 scaling solution that enhances Ethereum’s transaction throughput via zero-knowledge rollups (ZKRs). zkSync leverages ZKRs to process many transactions off-chain and submit only essential data back to Ethereum for final settlement. USDC on zkSync provides users with faster and cheaper transactions, making it a popular choice for DeFi applications and microtransactions. As with other Ethereum L2s, USDC on zkSync is issued according to the ERC-20 token standard.
USDC is made so widely available on a vast array of blockchain networks so that you can easily access, transfer, and use it on whichever platforms you choose.
Native vs bridged USDC
Note that the blockchains listed above feature native support for USDC — meaning the USDC originates directly from Circle on a particular blockchain. Native USDC is fully supported by the originating blockchain.
Previously, it was more common for USDC to be made available on other blockchains in a bridged form. Typically, bridged USDC is created when USDC is locked in a smart contract on one blockchain (i.e., the origin blockchain) and a “synthetic” or “bridged” form of USDC is minted on another blockchain (i.e., the destination blockchain) by a third-party bridge application.
Crucially, bridged USDC is not issued by Circle, and only native USDC is fully reserved and designed to be redeemable 1:1 directly from a Circle-authorized partner. Many blockchains support both native and bridged USDC — so you should always be aware of which version you’re interacting with.
Where can I get USDC?
While some enterprises can become distributors and mint USDC directly from Circle, most businesses and end-users acquire USDC through a network of OTC desks, retail partners, crypto exchanges, and platforms like Robinhood. USDC is widely available on many crypto exchanges, making it easily accessible.
To buy USDC on an exchange, you can deposit fiat or cryptocurrency on these platforms and execute a buy order. Here are some exchanges where you can buy USDC:
How to buy USDC on Binance
Known for its extensive range of cryptocurrencies and high liquidity, Binance allows users to buy USDC by depositing fiat or cryptocurrency into their account, navigating to the USDC trading pair, and placing a buy order. With a wide range of trading pairs for USDC, Binance is a convenient platform for beginners and experienced traders alike.
Learn more about how to buy USDC on Binance.
How to buy USDC on Bybit
ByBit is known for its derivatives trading and zero-fee USDC spot trading pairs. Deposit fiat or cryptocurrency to begin trading USDC on ByBit.
Learn how to buy USDC on Bybit on desktop and mobile.
How to buy USDC on Coinbase
Renowned for its user-friendly interface, Coinbase enables users to purchase USDC by depositing fiat currency via bank transfer or card, then selecting USDC and executing a buy order.
Learn how to buy USDC on Coinbase.
How to buy USDC on Crypto.com
Crypto.com is popular for its comprehensive crypto services, including a crypto debit card. You can purchase USDC on crypto.com by depositing fiat or cryptocurrency and making a purchase order.
How to buy USDC on Kraken
Kraken is an exchange known for its extensive range of cryptocurrencies, giving users the ability to trade USDC using a wide variety of trading pairs. Kraken allows users to buy USDC by depositing fiat or cryptocurrency into their account and making a buy order.
Check out Kraken’s 3-step guide to buying USDC.
How to buy USDC on OKX
OKX is another leading exchange that supports USDC, offering various trading pairs and advanced trading tools. Fund your account with fiat or cryptocurrency to buy USDC on OKX.
Read OKX’s simple guide on how to buy USDC.
How to buy USDC on Robinhood
USDC is also available on Robinhood Crypto — the self-custody crypto wallet built into Robinhood’s popular financial services app. Fund your account with a supported fiat currency or cryptocurrency to buy USDC on Robinhood Crypto.
Whether you're looking to send, spend, save, or trade, you can easily purchase USDC on any of these exchanges.
Where can I store USDC?
Storing your USDC safely is crucial when it comes to protecting your digital dollars. There are two main ways to store USDC: using a trusted custodian like an exchange to hold USDC on your behalf, or using a self-custody wallet to hold your own USDC.
The difference between self-custody and third-party custody comes down to a tradeoff between security and convenience. Using an exchange offers ease of access and simplicity but comes with the risk of relying on a third party. Self-custody wallets offer more direct control over your assets but require careful management.
Storing USDC on a centralized exchange
Storing USDC on an exchange can be convenient if you want easy access to your funds. All the popular exchanges listed above (and more) support USDC storage, allowing you to hold your stablecoins in exchange wallets without the need for self-custody. However, while using an exchange is simple and convenient, it does mean that you are trusting a third party with your funds, which can be a risk if the exchange faces security issues or insolvency.
Storing USDC with a self-custody wallet
A self-custody wallet provides you with sole ownership of your private keys, meaning no third-party has control over your assets.
Self-custody wallets can be software-based, such as MetaMask, or hardware-based, like Ledger. These wallets offer greater control and security since you are the only one with access to your private keys. However, self-custody requires more responsibility, as losing access to your private keys (or recovery phrase) can result in the permanent loss of your funds. Additionally, managing a self-custody wallet can be more complex and less convenient than using an exchange.
Self-custody crypto wallets come in two main varieties: software and hardware wallets.
USDC software wallets
Software wallets are digital cryptocurrency wallets that exist as software on your device that you access via an app or website. Software wallets can be custodial (i.e., a centralized crypto exchange) or self-custody (i.e., an app or browser extension that gives you control over your private keys). Some popular self-custody software wallets commonly used to store and interact with USDC include MetaMask and Phantom.
USDC hardware wallets
Hardware wallets are self-custody crypto wallets that store the private keys to your crypto offline, on a physical device that often looks similar to a USB flash drive. Some popular hardware wallet providers commonly used to store and interact with USDC include Ledger and Trezor.
By using reputable crypto exchanges, or software or hardware wallets, you can store, access, and use USDC with greater confidence.
Future outlook for USDC
USDC is a pivotal force in the digital finance revolution, bridging traditional financial frameworks with the vast and diverse blockchain ecosystem. Its robust regulatory1 compliance, transparent reserves, and multi-chain interoperability create a foundation of trust and accessibility for both users and institutions worldwide. From cross-border transactions to financial inclusion and DeFi applications, USDC is leading a new era of digital dollars that combines stability with innovation, empowering people around the world with more access and opportunity in the global economy.