The history of the creation of USDC (USD Coin) is an example of how traditional finance and blockchain technologies managed to unite to create a stable digital currency pegged to the US dollar.
Here is a detailed timeline and key milestones of its emergence and development:
1. Prerequisites (before 2018)
Before the emergence of USDC, the stablecoin market already existed but was mainly limited to Tether (USDT) — the first major stablecoin.
However, Tether often faced questions regarding transparency and backing with real dollars, creating demand for a more transparent and regulated alternative.
2. Creation and Launch (2018)
Launch date: September 2018
Founders:
the company Circle, founded by Jeremy Allaire and Sean Neville;
together with the CENTRE consortium, created by Circle and Coinbase.
The project's goal is to create a fully dollar-backed stablecoin that can be used for:
transfers between cryptocurrency exchanges;
payment for goods and services;
integration with DeFi projects;
storage of digital assets without volatility.
3. Collateral Mechanism
Each USDC = 1 US dollar stored in:
bank accounts,
short-term US Treasury bonds.
Regular audits (reserve reports are published monthly) are conducted by independent auditors, which distinguishes USDC from many competitors.
4. Ecosystem Expansion (2019–2021)
Initially, USDC operated only on Ethereum (ERC-20).
It was later launched on other blockchains:
Algorand, Stellar, Solana, TRON, Polygon, Avalanche, Arbitrum, Base, and others.
This allowed for reduced fees and accelerated transactions.
Coinbase and Circle actively integrated USDC into DeFi, NFT platforms, and Web3 financial applications.
5. Regulation and Partnerships (2022–2024)
Circle obtained licenses in the US and other countries, following AML/KYC standards.
In 2023, Circle announced plans to relocate its headquarters to the US for greater transparency with regulators.
In 2024, Coinbase became a co-founder of the Centre Consortium, securing a stake in the management of USDC.
6. Current Status (2025)
USDC is one of the most reliable and popular stablecoins in the world.
Its market capitalization fluctuates around $25–30 billion (after the decline in 2023 due to the crisis with the SVB bank, where part of Circle's reserves were held).
Used in numerous ecosystems — DeFi, NFT, cross-chain payments, Web3 games, and international transfers.
7. Key Features of USDC
Characteristic Description
Pegging 1 USDC = 1 USD
Issuer Circle Internet Financial Ltd.
Management Centre Consortium (Circle + Coinbase)
Backing US dollars and short-term treasury bonds
Reporting Monthly audit reports
Supported blockchains Ethereum, Solana, Polygon, Arbitrum, Avalanche, Base, and others
