What Is USDC? The Stablecoin Explained (2026)

IssuerCircle

Pegged toUS dollar, 1:1

In circulationAbout $71B (26 Oct 2026)

Native on38 blockchains

USDC is a stablecoin: a crypto token designed to always be worth one US dollar. It’s issued by the US company Circle and backed by cash and short-term US government assets. For prediction markets it matters because Polymarket’s main exchange settles in a dollar token backed by USDC, and Kalshi accepts USDC deposits. This guide explains what USDC is, how it’s backed and regulated, and how it’s used, from Circle’s own disclosures and regulatory sources, checked October 2026.

How USDC keeps its value

For every USDC in circulation, Circle says it holds an equal amount in reserves. According to Circle’s annual report for 2025, about 88% of those reserves sat in the Circle Reserve Fund, a US-registered government money-market fund managed by BlackRock, with the rest held as cash at banks. Circle publishes its reserve holdings on its transparency page and says independent monthly attestations are carried out by a Big Four accounting firm. Holders who are Circle customers can redeem USDC for dollars one-to-one.

Where USDC lives

USDC isn’t on one blockchain: Circle issues it natively on 38 networks, including Ethereum, Solana, Base, Arbitrum and Polygon. “Natively issued” means Circle mints it directly on that chain. Bridged versions, such as USDC.e on Polygon, are different tokens created by bridges, not by Circle. That distinction matters when you deposit: see USDC on Polygon.

Regulation

United States. The GENIUS Act, the first federal law for payment stablecoins, was signed in July 2025. The Office of the Comptroller of the Currency’s implementing rule takes effect on January 18, 2027. In July 2026 Circle received final approval for a national trust bank charter.
European Union. Circle’s French entity holds an electronic money institution licence, and Circle says it was the first global stablecoin issuer to comply with the EU’s MiCA rules, in July 2024.

USDC and prediction markets

Polymarket (main exchange) converts deposits into pUSD, a token on Polygon backed one-to-one by USDC, and converts back on withdrawal. You can deposit USDC from many networks. See Polymarket deposits and withdrawals.
Kalshi accepts crypto deposits, processed for US customers by Zero Hash, and credits them as dollars. See Kalshi deposits and withdrawals.

Risks to know

Not a bank deposit. USDC isn’t covered by deposit insurance; its value depends on Circle’s reserves and ability to redeem.
Network mistakes. Sending USDC on the wrong network, or bridged USDC where native is expected, can lose funds.
De-pegs happen. Stablecoins can briefly trade below $1 in a crisis, as USDC did in March 2023 when a bank holding part of its reserves failed.

FAQ

Is USDC the same as a dollar?

It’s designed to be worth exactly one dollar and is backed by dollar assets, but it’s a crypto token issued by a private company, not government money or an insured deposit.

Who owns USDC?

USDC is issued by Circle Internet Group, which has been listed on the New York Stock Exchange since 2025.

Is USDC better than USDT?

They do the same job with different issuers, disclosures and regulation. See USDC vs USDT.