USDC
Crypto Overview
Intended and Actual Utility
USDC is a stablecoin created by Circle and Coinbase through the Centre Consortium, designed to maintain a 1:1 peg with the US Dollar. Its primary purpose is to serve as a stable digital dollar for cryptocurrency transactions, settlements, and as a bridge between traditional finance and digital assets.
The stablecoin is fully backed by cash and short-duration U.S. Treasury bonds, with reserves held in regulated U.S. financial institutions. Monthly attestation reports are published by Grant Thornton LLP to verify the backing of USDC tokens.
Real World Adoption
USDC has achieved significant adoption in both centralized and decentralized finance. It is widely used for trading, payments, and as a stable store of value in the crypto ecosystem. As of 2024, USDC maintains its position as one of the largest stablecoins by market capitalization, with extensive integration across major blockchain platforms including Ethereum, Solana, Avalanche, and others.
Business Model and Revenue Structure
Circle generates revenue primarily through the interest earned on the reserve assets backing USDC, while maintaining full backing of user deposits. The company also offers institutional services and API solutions for USDC integration.
Founder Assessment
Circle, founded by Jeremy Allaire and Sean Neville, has maintained a strong reputation in the cryptocurrency industry. The company is regulated as a money services business in the United States and has demonstrated commitment to compliance and transparency. Circle has successfully raised capital from major financial institutions and maintains clear communication about its operations and reserve management.
Crypto Impact
To assign a comfort level investing in 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 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.