Classic USDC
Crypto Overview
Purpose and Utility
USDC is a stablecoin pegged to the US dollar at a 1:1 ratio. Created by Circle and Coinbase through the Centre consortium, USDC's primary purpose is to serve as a digital dollar representation on blockchain networks. Each USDC token is backed by actual US dollars held in regulated financial institutions.
Business Model and Implementation
Circle generates revenue through treasury management of the reserve assets and licensing the USDC infrastructure to financial institutions. The business model is transparent, with regular attestations of reserves by Grant Thornton LLP. The primary use case is facilitating digital dollar transactions and serving as a stable store of value in the crypto ecosystem.
Real-World Adoption
USDC has achieved significant adoption as one of the largest stablecoins by market capitalization. It is widely used across major cryptocurrency exchanges, DeFi protocols, and for international payments. Major financial institutions and payment providers have integrated USDC into their services.
Development Activity
Circle maintains active development of the USDC infrastructure, regularly implementing security upgrades and expanding to new blockchain networks. The project has strong institutional backing and a clear roadmap for future development.
Token Distribution
USDC is minted when US dollars are deposited and burned when redeemed, maintaining a transparent 1:1 backing. There is no token allocation to founders or early investors as it functions purely as a digital dollar representation.
Crypto Impact
To assign a comfort level investing in Classic USDC from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Classic USDC.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.