How It Works
Circle holds 100% of USDC reserves in cash and short-duration US Treasury securities held in segregated accounts at US-regulated financial institutions, including BNY Mellon and BlackRock's Circle Reserve Fund. Users mint USDC by sending USD to Circle's banking partners through the Circle Account API or directly via Coinbase. USDC is burned when users redeem with Circle for USD, a process available to verified business accounts. The Cross-Chain Transfer Protocol (CCTP) allows native USDC minting/burning across supported chains without bridges, reducing bridge hack risk.
Backing Type: Fiat-Backed
Fiat-backed stablecoins are collateralized by real-world assets held in bank accounts or custodied trust accounts — typically US dollars, Treasury bills, or cash equivalents. The issuer is responsible for maintaining 1:1 reserves and publishing regular attestations.