USDC

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Key Points

• USDC, Circle's stablecoin, is pivotal for future finance, enabling fast, low-cost global payments.

• USDC will enhance financial inclusion, especially in emerging markets, by providing digital dollar access.

• USDC's growing adoption, with significant market growth and regulatory compliance achievements.

Circle's stablecoin, USDC, is a digital currency pegged 1:1 to the US dollar, designed for stability in transactions and value storage. It plays a key role in transforming global finance by enabling real-time, low-cost payments and promoting financial inclusion, particularly in underserved regions.Role in Future FinanceUSDC facilitates instant cross-border payments, settling in seconds, which is faster than traditional banking. It supports financial inclusion by offering digital dollar access without needing traditional banks, especially in emerging markets. Its programmability allows for innovative financial applications, and its support on 23 blockchain networks, like Ethereum and Solana, ensures interoperability.Achievements and Advances Circle achieved a milestone by listing on the NYSE in 2025, becoming the first publicly traded stablecoin issuer, with its stock tripling on day one. USDC's circulation grew 78% year-over-year, reaching a $39 billion market cap by June 2025. It processed over $26 trillion in transactions, with monthly volumes hitting $1 trillion in November 2024. Advances include the Circle Payments Network for cross-border payments and the Cross-Chain Transfer Protocol for seamless blockchain transfers, alongside regulatory compliance with frameworks like MiCA and SEC designations.Survey Note: Comprehensive Analysis of Circle's Stablecoin (USDC) Introduction Circle's stablecoin, USDC, is a digital currency pegged 1:1 to the US dollar, designed to maintain stable value for transactions and storage. Backed by highly liquid cash and cash-equivalent assets managed by BlackRock, USDC is issued by Circle, a company founded in 2013 and focused on digital payments and blockchain finance. This note explores USDC's role in the future of finance, detailing its achievements and advances as of June 24, 2025, based on recent reports and market analyses.Role in the Future of Finance USDC is positioned as a transformative force in global finance, offering several key benefits:

• Global Payments: USDC enables instant, low-cost transactions across borders, settling in seconds, which is a significant improvement over traditional banking systems. This is particularly valuable for cross-border remittances and international trade, with transaction costs as low as a fraction of a penny due to improvements in blockchain infrastructure.
• Financial Inclusion: By providing access to digital dollars without relying on traditional banks, USDC helps reach underserved populations and markets, promoting financial inclusion. This is especially relevant in emerging markets rapidly switching from cash to non-cash payments, where 65% of payments executives recognize the need for expanded instant payments infrastructure, as noted in the 2025 World Payments Report World Payments Report.
• Programmable Money: Its integration with blockchain technology allows for the creation of smart contracts and decentralized financial (DeFi) applications, enhancing efficiency and innovation. USDC's role in DeFi is significant, with a 69% share of stablecoin trading volume through November 30, 2024, as DeFi's total value locked (TVL) reached over $126 billion.
• Interoperability: USDC is natively supported on 23 blockchain networks, including Ethereum, Solana, Arbitrum, Optimism, Avalanche, Base, and Polygon, enabling seamless movement between different ecosystems via the Cross-Chain Transfer Protocol (CCTP). This interoperability is crucial for building a connected financial ecosystem.
• Institutional Adoption: USDC provides institutional-grade liquidity for trading and rebalancing across chains or borders, making it a critical tool for institutional investors and financial institutions. Circle's expanding global banking network further connects USDC to traditional finance, driving durable connection points.
• Comparison to CBDCs: Unlike central bank digital currencies (CBDCs), which are still in development, USDC is already widely used and operates on public blockchain networks, offering immediate utility and accessibility. Circle's response to the Federal Reserve's CBDC discussion paper highlights this advantage Circle CBDC Response.

Achievements Circle and USDC have achieved several significant milestones, demonstrating their growing influence in the digital finance landscape:

• Public Listing: Circle became the first publicly traded stablecoin issuer in the U.S., listing on the NYSE in 2025 under the ticker "CRCL." Its stock tripled on the first day of trading, closing at $83.23 and valuing the company over $18 billion, reflecting strong market demand and institutional support from firms like Goldman Sachs, JPMorgan, and Citigroup.
• Market Growth: USDC's circulation grew by 78% year-over-year from January 2024 to January 2025, with a market capitalization of approximately $39 billion by June 2025, ranking second among global stablecoins (behind USDT, according to CoinMarketCap). As of June 19, 2025, USDC in circulation was $61.2 billion, showcasing robust growth.
• Transaction Volume: USDC has processed over $26 trillion in all-time transaction volume, with monthly volumes reaching $1 trillion in November 2024. This includes $18 trillion from January 2020 to November 30, 2024, and an additional $8 trillion in EVM token transfer volume on various networks like Arbitrum and Ethereum.
• Adoption: USDC is accessible to over 500 million end-user wallet products and is supported by a network of over 1,000 banks, blockchains, distributors, and other partners. It is deployed across multiple public chains, supporting exchanges, DeFi protocols, high-speed payments, and cross-chain asset transfers.
• Regulatory Compliance: Circle has achieved compliance with various regulatory frameworks, including being designated a "Covered Stablecoin" by the SEC in April 2025, ensuring it is not classified as a security. It also complies with the Markets in Crypto-Assets (MiCA) framework in Europe, effective from day one, and has monthly reserve attestations by Deloitte & Touche LLP since 2022 (previously Grant Thornton LLP from 2015). Circle holds money transmitter licenses in 46 states, the District of Columbia, and Puerto Rico, and a BitLicense from the New York State Department of Financial Services (NYDFS).
• Global Reach: The passage of Hong Kong's "Stablecoin Ordinance" on May 21, 2025, effective August 1, 2025, positions USDC favorably as the first jurisdiction with a comprehensive regulatory framework for fiat-pegged stablecoins, enhancing its global adoption.

Advances Circle continues to innovate and expand the capabilities of USDC, driving advancements in the stablecoin ecosystem:

• Technological Innovation: The launch of the Circle Payments Network (CPN) enables stablecoin-powered cross-border payments, offering a faster and more efficient alternative to traditional payment rails. Announced in 2025, CPN has attracted early adopters, further integrating USDC into global payment systems.
• Cross-Chain Transfers: The Cross-Chain Transfer Protocol (CCTP), built on open protocols with APIs and SDKs, allows USDC to move seamlessly between different blockchain networks, enhancing its utility and interoperability. This is supported by Circle's developer tools available at Circle Developers.
• Regulatory Progress: Circle's compliance with stringent regulatory standards, including the SEC's "Covered Stablecoin" designation and Hong Kong's "Stablecoin Ordinance," positions USDC as a trusted and reliable digital currency. The U.S. Senate's passage of the GENIUS Act in June 2025 is expected to unlock further growth in the $256 billion stablecoin market, boosting revenue for Circle and competitors.
• Institutional Tools: Circle Mint allows institutions to redeem USDC 1:1 for USD, providing a bridge between traditional finance and digital assets. This is supported by Circle's expanding global banking network, with access via the Circle Alliance Program and a directory of partners at Circle Partners. However, this service is not available to individuals or small businesses.
• Blockchain Infrastructure: Improvements in blockchain technology have made USDC payments faster, safer, and more resilient, with transaction costs as low as a fraction of a penny. This mirrors the evolution from dial-up to broadband internet, akin to video consumption growth to over 1 billion hours daily in 2022, as noted in global media insights YouTube Statistics.
• Global Financial Inclusion: USDC is driving major advances in global financial systems, including dollar access, payments, digital asset markets, and humanitarian aid, particularly in emerging markets. Its role in DeFi, with a 69% share of stablecoin trading volume, underscores its importance in building a more accessible and efficient global financial system.

Circle's USDC is at the forefront of the digital finance revolution, offering a stable, regulated, and widely adopted stablecoin that is transforming how money moves globally. Its role in enabling real-time payments, financial inclusion, and programmable money positions it as a cornerstone of the future of finance. With impressive achievements such as its public listing, massive transaction volumes, and regulatory compliance, along with advances like CCTP and CPN, USDC is not only reshaping the cryptocurrency landscape but also bridging traditional finance with the digital economy.