Buy USD Coin in the UK

USDC is a US-dollar pegged stablecoin built on the Ethereum network. At all times the value of a single USDC token is tied to one US dollar, hence the term stablecoin.

For every USDC in existence, Circle guarantees that there is one US dollar sitting in their reserves. USDC is, in essence, a tokenised dollar, permitting holders to make transactions on the crypto markets as if they were using actual US dollars.

USDC is backed by cash and cash-equivalent assets and is redeemable 1:1 for US dollars. A portion of the USDC reserve is invested in the Circle Reserve Fund (USDXX), an SEC-regulated money market fund managed by BlackRock.

How does USDC maintain its value?

USDC maintains its value by pegging 1:1 to the US dollar, with each USDC token backed by the equivalent value of US dollar denominated assets held by Circle Internet Financial, LLC as reserves for the benefit of USDC holders. Cash is held at regulated financial institutions. The portfolio of the Circle Reserve Fund, which can contain short-dated US Treasuries, overnight US Treasury repurchase agreements, and cash, is custodied at The Bank of New York Mellon and is managed by BlackRock.

Circle intends to publish annual audit reports and monthly attestations to provide assurance that for every USDC in circulation, there is a corresponding US dollar in reserve.

Learn more: https://www.circle.com/en/transparency

What risks should I be aware of when purchasing USDC?

Customers should be aware that after successful audits in 2019, 2020 and 2021, there has been a failed audit in 2022 and Circle has hired Deloitte for the 2023 audit. Circle releases monthly attestation reports which contain their consolidated assets and liabilities. These quarterly reports have shown that USDC’s reserves can be made up of cash and cash equivalents (such as U.S. Treasury Bills) and overnight US Treasury repurchase agreements.

USDC risks include no guarantee of price stability, encumbrances, irreversibility of on-chain transactions, legal treatment of USDC transfers, risks associated with third-party platforms, software protocols and operational challenges including compliance, legislative and regulatory changes. There is no deposit insurance and Circle has the ability to block and blacklist addresses & forfeit funds.

Learn more: https://www.circle.com/en/legal/usdc-terms and https://www.circle.com/en/legal/usdc-risk-factors