USDC is Circle's dollar stablecoin, redeemable 1:1 under issuer terms, backed by U.S. Treasuries, repos, and cash in a fund and segregated bank accounts. The static profile records its US Dollar peg mechanism as: 1:1 redemption through an eligible Circle Mint account outside the EEA; EEA holders have rights under Circle Europe's MiCA terms.

As of Oct 25, 2026, Pharos grades USDC A+ (87/100) on its Safety Score. Pharos's reviews record that the issuer or an admin can freeze individual holders' balances, and direct redemption is limited to customers the issuer has verified. That grade is in the Score's upper band, which does not rule out losses. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.

Pharos records USDC's reserves as of Aug 31, 2026 as 67.6% Overnight Reverse Treasury Repo, 18% <3-Month U.S. Treasuries, and 14.4% Cash at Regulated Financial Institutions (net settlement adjustments). Reserve evidence: Independent Audit by Deloitte, latest period ending Aug 31, 2026. Pharos classifies the backing as Real-World Asset Backed.

Based on tracked contract metadata and blacklist coverage, issuer or admin freeze controls are recorded. Live freeze and blacklist events for USDC, when applicable, appear in the live dossier on this page.

Under the route Pharos reviewed on May 17, 2026, customers the issuer has verified can redeem USDC for a single stable asset, such as cash or a stablecoin. Settlement is same-day. The fee is variable or not fully published. Whether a given holder qualifies is set by the route's own terms, not by this summary.

Yes. USDC traded below its $1 target in March 2023 after Silicon Valley Bank failed and Circle disclosed reserve exposure to the bank. It recovered after authorities announced protection for SVB depositors. This historical recovery is not a guarantee of future peg stability.