What is USDC ?

What is USDC ?
USDC is a digital blockchain version of the US dollar that is fully backed 1:1 with USD. It combines the stability of the US dollar with the speed and global reach of blockchain, enabling instant and 24/7 transfers at a significantly lower cost than traditional bank transfers. USDC is not a blockchain itself but operates across multiple blockchains and is used globally for payments, settlement, and treasury operations.

As of November 12, 2025, USDC has approximately $73.7 billion in circulation, representing a 100% year-over-year growth. The full breakdown of reserves and minting/redemption is available on Circle’s Transparency page:

https://www.circle.com/transparency

The reserves overview presents the total amount of USDC minted and redeemed, as well as the net amount of USDC currently in circulation. Deloitte audits the reserves monthly. Is USDC secure? USDC is one of the most transparent and closely supervised digital currencies available. Circle publishes monthly reserve reports, as well as independent attestations from four major firms, including Deloitte, confirming that every USDC is backed at a minimum of 1:1 with USD. Because USDC operates on public blockchains, all transfers are traceable and monitored by specialist compliance firms such as Chainalysis, TRM Labs and Elliptic. This transparency makes it easier to detect and prevent illicit activity compared with cash or certain traditional bank transfers. When a Norwegian business receives USDC from a regulated or MiCA-compliant counterparty, the sender has already completed all required KYC and AML checks.

Regulatory framework
USDC is issued globally by Circle Internet Financial, LLC, a US financial institution registered as a Money Services Business (MSB) with FinCEN and supervised by US state banking authorities. The parent company, The Circle Internet Group, Inc., is listed on the New York Stock Exchange. In Europe, USDC is issued by Circle Internet Financial Europe SAS, a French entity authorised as an Electronic Money Institution (EMI) by the French financial regulator, the ACPR, under registration number 17788. This licence is passportable across all EU and EEA countries, allowing Circle to issue and operate USDC and EURC in compliance with MiCA throughout Europe, including Norway via the EEA framework.

Legality for Norwegian companies
Using USDC as a form of settlement is entirely legal for Norwegian businesses. There is no regulation in Norway preventing companies from accepting digital assets as payment between two consenting parties. The requirement is that standard accounting, tax and AML obligations are followed. When USDC is received through a regulated exchange or a platform such as TÝR Markets, the transaction is in accordance with the European regulatory framework, and the transaction can be treated similarly to other settlement methods, such as USD.

Institutional adoption:
USDC is the second-largest stablecoin, with around half the market capitalisation of USDT, but it is currently growing at more than twice the pace. Its largest users include regulated exchanges, international payment processors, fintech platforms, asset managers and institutional trading firms. From a technical perspective, USDC and USDT operate in a similar manner. Still, institutions increasingly prefer USDC due to its transparency, audited reserves, and clear regulatory status in both the United States and the European Union. This shift has led many professional organisations to reduce reliance on USDT in favour of USDC. Both stablecoins deliver significant operational advantages compared with traditional banking systems, but USDC provides the regulatory certainty and compliance alignment required by many financial institutions.

Is USDC a separate blockchain ?
USDC is not a blockchain. It is a digital dollar token that operates on public blockchains, including Ethereum, Solana, and Avalanche. These networks validate transactions, record ownership, prevent double-spending and ensure transfers cannot be altered once confirmed. USDC uses the token standards of each blockchain, such as ERC-20 on Ethereum, where the smart contract records ownership and updates balances. Because the process does not rely on banks or intermediaries, transfers settle in seconds at any time of day.

Supported networks for USDC ?
USDC is available on a wide range of public blockchains. It is issued natively on Algorand, Aptos, Arbitrum, Avalanche, Base, Celo, Codex, Ethereum, Hedera, HyperEVM, Ink, Linea, NEAR, Noble, OP Mainnet (Optimism), Plume, Polkadot, Polygon PoS, Sei, Solana, Sonic, Stellar, Sui, Unichain, World Chain, XDC, XRP Ledger and zkSync. Many of these networks utilise the ERC-20 standard because they are compatible with Ethereum’s smart contract system, even though they are not part of the Ethereum blockchain. This broad support enables businesses to select the network that offers the optimal balance of speed, cost, and ecosystem compatibility.

Bridged or wrapped USDC Bridged ?
USDC is not issued by Circle but created by third-party bridge protocols that lock native USDC on one blockchain and mint a new version on another chain. These tokens often appear as USDC.e, USDC.b or similar. They are technically copies of USDC and do not carry Circle’s guarantees, reserve backing or redemption rights. Bridged USDC depends entirely on the bridge smart contract and its security, and Circle will not redeem it for USD. For business payments and settlement, only native USDC on Circle-supported networks should be used.

How to ensure you are not receiving bridged USDC ?
A user can verify that they are receiving native USDC by checking the token’s contract address and the network it is sent on. Native USDC can only exist on blockchains officially supported by Circle, and each of these networks uses a specific contract address published by Circle on its transparency page. Before accepting payment, the user should confirm that the sender is using one of these supported networks and that the token address matches the official native USDC contract for that chain. If the address is different, or if the token name includes variations such as USDC.e, USDC.b it implies that the token is a bridged and not native USDC. Wallets and explorers typically indicate whether a token is native or a wrapped instrument. Still, the most reliable method for verifying the contract address is against Circle’s official list is to use the best way to do so. This ensures that the received USDC is fully backed, redeemable and compliant.

How the minting process works (creating new USDC) ?
Creating new USDC is done through a fully collateralised process known as minting. Pre-approved institutional clients send US dollars to Circle (the parent company of USDC) through traditional banking rails. Only verified institutions onboarded with CIRLCE can mint or redeem USDC. The USD er deposited into Circle’s regulated reserve accounts after passing KYT (know your transaction), AML (anti-money laundering) and source-of-funds checks. Circle then triggers a transaction using the USDC smart contract to mint an identical amount of USDC and deliver it to the client’s blockchain wallet. Because minting can only occur after USD is received, the supply of USDC always matches dollar reserves.

Who can redeem USDC ?
Redemption of USDC can only be requested by the same types of institutions that are permitted to mint it directly with Circle. The process mirrors minting in reverse: once the USDC is returned and burned, Circle releases the equivalent amount of USD to the client’s bank account. Institutions typically onboarded with Circle include regulated exchanges, payment companies, custodians, fintech platforms and corporate treasury clients. Private individuals cannot redeem USDC directly with Circle. Still, they can convert it through regulated brokers or licensed exchanges that support USDC.

Does minting and redeeming operate 24/7 ?
Minting and redeeming are tied to the operating hours of the banking systems. Since banks do not operate 24/7, minting and redeeming occur only during US banking hours. While USDC itself can be transferred on the blockchain at any time, Circle can only mint or redeem tokens once USD has been received through traditional banking channels and can only redeem tokens when outgoing USD transfers can be processed.

Cost of minting and redeeming USDC ?
Redeeming USDC directly with Circle is free of charge for approved institutional clients; the standard bank wire and other fees may apply. Because institutions can always redeem or mint USDC at face value, USDC remains very stable and trades closely to one dollar at all times. This convertibility mechanism is essential to keep the market price aligned with USD.

How stablecoin companies make money ?
Stablecoin issuers earn revenue mainly from the interest generated by the US dollar reserves backing the USDC tokens. These reserves comprise cash and short-term Treasury bills. A US Treasury bill (T-Bill) is a short-term US government debt that matures within one year. The reserves of Circle (USDC) are custodied at The Bank of New York Mellon and managed by BlackRock Inc. Circle, USDC’s stablecoin company, does not charge fees for issuing or redeeming USDC.