Why USDC Is Trusted and What That Means for Crypto Payments and Trading
What Is Stablecoin?
Let’s start with the basics. Shall we?
A stablecoin is a type of cryptocurrency designed to maintain a stable value. Unlike other cryptocurrencies that can fluctuate in price from minute to minute, stablecoins are pegged to the value of a fiat currency, such as the US dollar or euro. This makes them a more predictable and practical tool for things like payments, remittances, and savings. There are different types of stablecoins based on how they maintain their peg. Some use algorithms, others are backed by crypto or fiat reserves.
So let’s talk about USDC. USDC belongs to the fiat-collateralised category, it is backed 1:1 by actual US dollars and short-term US government bonds held in regulated financial institutions.
What is USDC?
USD Coin (USDC) is a stablecoin pegged to the US dollar. It was launched in 2018 by Circle, in partnership with Coinbase. It runs on multiple blockchains, including Ethereum, Solana, Avalanche, and many more, making it a versatile tool for payments, DeFi, and commerce.
Why Is USDC Unique?
While there are several stablecoins in circulation, USDC stands out for a few key reasons:
USDC is a regulated digital currency established in 2018 and issued by Circle, a regulated financial service business that follows strict US laws and standards. Circle is registered as a Money Services Business in the US and is pursuing licensing globally.
USDC is highly transparent. Circle, the company behind USDC, releases monthly reports to show that USDC is fully backed by cash and short-term U.S. Treasury securities. These reports are done by independent accounting firms, ensuring that every USDC token is properly supported. This transparency helps build trust in USDC’s stability.
Source: Circle.com
USDC stands out as a fully backed and fully audited stablecoin, with every token 100% backed by cash and short-term U.S. Treasuries. These reserves are regularly attested by independent third-party auditors, an assurance not all stablecoins can offer. Natively supported on 19 blockchain networks, USDC offers multichain flexibility, making it ideal for a wide range of use cases across DeFi, Web3 applications, and traditional financial systems.
Its credibility and reliability have led to broad enterprise adoption, with major institutions, fintech companies, and payment processors integrating USDC into their platforms to support cross-border payments, tokenised asset markets, and more. In addition, the popular stablecoin enables fast, global transactions that settle in seconds and operate 24/7, unlike traditional bank wires, which are constrained by delays and limited business hours.
USDC and Trading - Stability in a Volatile Market
For traders in the crypto market, volatility presents both opportunities and risks. USDC plays a crucial role by providing a stable, liquid, and trusted alternative to fiat currencies on digital asset platforms. One of the primary reasons traders use USDC is to hedge against volatility. When markets experience significant swings, traders often convert volatile assets like Bitcoin or Ethereum into USDC to lock in profits or protect against losses, without having to leave the crypto ecosystem. Another advantage of USDC is its ability to enable instant settlements. Operating on blockchain networks, USDC facilitates trades that settle within seconds, making it ideal for active trading strategies and arbitrage across exchanges. Additionally, USDC is widely used as a base trading pair (e.g., BTC/USDC, ETH/USDC) due to its reliability and broad adoption.
USDC on Coinify Trade Platform
At Coinify, we support USDC on 9 major blockchain networks, offering users flexibility and choice when transacting with stablecoins. If you're looking to buy or sell USDC through our Trade platform, Coinify makes it easy and efficient to get you started.
Supported networks for Coinify’s Trade include: Ethereum, Algorand, Arbitrum, Avalanche, Base, Binance, Solana, Polygon, Optimism.
How to BUY or SELL USDC on Coinify:
Got to our Trade platform https://www.coinify.com/trade
Choose whether you want to buy or sell, then select which USDC from the available list you would like to trade, and enter the amount.
Follow the on-screen instructions to complete the transaction.
USDC for Payments - Real Benefits for Merchants
USDC is surely gaining traction as a powerful tool for streamlining payments, especially for businesses operating globally and online. By using USDC, merchants can tap into the efficiency, speed, and cost savings of blockchain technology without exposing themselves to crypto market volatility.
As of early 2025, USDC has surpassed an impressive $20 trillion in total on-chain transaction volume, with $1 trillion processed in just November 2024 alone. This remarkable growth highlights USDC's increasingly important role in global digital payments, as businesses and individuals turn to stablecoins for fast, secure, and cost-effective transactions across borders. USDC's adoption continues to grow, solidifying its position as one of the most widely used and trusted stablecoins in the market.
Accept USDC payments with Coinify
Accepting USDC and other cryptocurrencies across multiple blockchains in a simple and compliant way with Coinify. You can get started by creating an account with us here.
Supported networks for Coinify Payments include: Ethereum, Arbitrum, Avalanche, Base, Binance, Solana, Polygon,Optimism.
If you are are merchant and already have an account with us and want to accept USDC payments, simply log in to your account here:
Which Blockchain Should You Use for USDC?
Since USDC does not have its own native blockchain, it is available on multiple blockchains, offering users the flexibility to choose the network that best suits their needs. Popular blockchains supporting USDC include Ethereum, Solana, Polygon, Avalanche, and Algorand, among others. Each blockchain provides unique advantages in terms of transaction speed, cost, and scalability. For instance, Ethereum is widely adopted but can have higher transaction fees, while networks like Solana and Polygon offer faster and more cost-effective options. Choosing the right blockchain depends on your specific use case, whether it’s for low-cost payments, quick settlements, or enhancing transaction efficiency for your business operations.
To summarise it all, USDC has earned its place as one of the most trusted stablecoins out there. Its transparency, reliability, and broad support across blockchains make it a go-to choice for both trading and payments. Whether you're hedging against market swings or just looking for a faster, easier way to move money, USDC delivers. And with platforms like Coinify making it simple to buy, sell, or accept USDC, getting started has never been easier.
