Which company created USDC?
USDC (USD Coin), as a highly trusted stablecoin in the cryptocurrency market, is becoming the choice of more and more investors. This article will provide an in-depth analysis of USDC’s background, features, and its unique advantages in the crypto market.
Founding Background and Development History of USDC
USDC was jointly launched by two leading U.S. blockchain companies:
- Circle: A renowned fintech company headquartered in Boston, backed by top-tier institutions including Goldman Sachs and Bitmain
- Coinbase: A globally leading cryptocurrency exchange, publicly listed on Nasdaq (stock code: COIN)
This stablecoin was officially launched in September 2018 and was initially managed through the Centre consortium. Notably, since 2023, Circle has fully taken over the operational management of USDC.
Analysis of USDC’s Core Advantages
Stringent Compliance Assurance
USDC has significant advantages in terms of compliance:
- Directly regulated by the U.S. Office of the Comptroller of the Currency (OCC)
- Backed by 100% cash and short-term U.S. Treasury bonds
- Independently audited monthly by Deloitte, one of the Big Four accounting firms
Outstanding Circulation Performance
USDC has achieved multi-chain deployment:
- Mainnet built on the Ethereum blockchain
- Supports over 10 mainstream public chains including Solana and Avalanche
- As of July 2024, the circulation volume has reached approximately $32 billion (source: CoinGecko)
Comprehensive Comparison Between USDC and USDT
Regarding investors’ concerns about stablecoin selection, we have specially compiled key differences between the two major stablecoins:
| Comparison Dimension | USDC | USDT (Tether) |
|---|---|---|
| Issuing Entity | Circle & Coinbase | Tether Limited |
| Audit Standards | Monthly public audits (Deloitte) | Irregular audits |
| Reserve Composition | 100% cash + U.S. Treasuries | Partially backed by commercial papers |
| Regulatory Status | Holds U.S. MSB license | No clear sovereign regulation |
Why Do Professional Investors Prefer USDC?
- Ultimate Security: Coinbase platform supports 1:1 direct USD conversion
- Wide Range of Applications:
- The preferred stablecoin for mainstream DeFi protocols like Aave and Uniswap
- Adopted by globally renowned companies such as Tesla and Visa
- Strong Crisis Response Capability: During the 2023 Silicon Valley Bank crisis, although USDC briefly depegged to $0.87, Circle quickly transferred reserves and restored the peg in just 3 days, demonstrating exceptional risk management capabilities.
For investors looking to purchase USDC, it is recommended to trade through compliant exchanges like Coinbase and Binance to ensure fund safety.
Conclusion
When choosing a stablecoin, beyond considering yield, it is crucial to pay attention to its compliance and transparency. With its strict regulation and regular audits, USDC has become the preferred stablecoin solution for institutional investors.
