What could affect the price of USDC?
USDC’s price stability is being tested by new regulations, growing adoption, and changes in liquidity.
- Stricter regulations – The GENIUS Act bans interest on stablecoins, changing demand patterns (Bearish/Mixed Impact)
- Growing institutional use – Partnerships with Hyperliquid and World Chain increase USDC’s real-world use (Bullish Impact)
- Reserve transparency – USDC’s $73 billion market cap is backed by U.S. Treasury securities (Neutral/Bullish)
Deep Dive
1. Stricter Regulations (Bearish/Mixed Impact)
Overview:
In June 2025, the U.S. passed the GENIUS Act, which stops stablecoins from paying interest and requires issuers to have insurance similar to the FDIC. In Europe, the MiCA regulation demands stablecoins hold full reserves and undergo audits. This has led exchanges to remove competitors like USDT that don’t meet these rules.
What this means:
USDC’s transparent, audit-first approach fits well with these rules. However, banning interest payments limits growth opportunities in decentralized finance (DeFi). On the bright side, USDT’s removal from European exchanges has helped USDC capture 74.6% of over-the-counter trading volume (CoinDesk).
2. Growing Institutional Use (Bullish Impact)
Overview:
Circle, the company behind USDC, recently went public and formed partnerships with Hyperliquid, which processes $6.1 billion in USDC daily, and World Chain, which has 27 million users. Other collaborations, like Ant Group’s cross-border treasury services and OKX’s free USDC conversions for 60 million users, are boosting demand.
What this means:
Institutions are increasingly using USDC, including through ETFs and corporate treasury operations. For example, Metaplanet bought $15 million worth of Bitcoin using USDC. This has led to a 40.4% increase in USDC supply this year, narrowing the gap with Tether to a 2.5:1 ratio (CryptoQuant).
3. Reserve & Liquidity Overview (Neutral/Bullish)
Overview:
USDC holds $73 billion in reserves, fully backed by cash and short-term U.S. Treasury securities, with monthly audits to confirm this. However, large transfers, like a recent $500 million move to Binance, show potential liquidity risks if funds aren’t quickly redeployed.
What this means:
USDC’s transparency helps prevent sudden price drops seen in algorithmic stablecoins. Still, if many users redeem USDC at once during a crisis, reserves could be strained. The 24-hour turnover ratio is 0.169, indicating stable liquidity, though it’s lower than Tether’s 0.42 (CoinMarketCap).
Conclusion
USDC’s price stability depends on balancing regulatory compliance with growing institutional use while maintaining trust in its reserves. European regulations and corporate partnerships support growth, but restrictions on yield and potential redemption pressures remain challenges. The key question is: Can Circle’s Treasury management handle a possible crypto liquidity crunch in 2026?
What are people saying about USDC?
USDC’s stability and strong regulatory backing are building quiet confidence. Here’s what’s trending:
- Regulatory readiness – Circle promotes USDC as compliant with new EU rules (MiCA)
- Institutional gateway – Seen as a key tool for accessing Treasury bill yields
- Bearish satire – Jokes about betting against USDC highlight its reliable peg
- DeFi dominance – Airdrop incentives are driving more demand
Deep Dive
1. @circle: “Built for this moment” bullish
“USDC is ready. Are you?”
– @circle · July 18, 2025, 9:16 PM UTC
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What this means: This is positive news for USDC’s adoption in the European Union as the MiCA regulations come into effect. Circle is positioning USDC as the go-to stablecoin for institutions that want to comply with these new rules, which could help USDC gain market share over competitors that aren’t regulated.
2. @SeiNetwork: Institutional yield bridge bullish
“$6.2T in T-bills could flow onchain via USDC”
– @SeiNetwork · July 16, 2025, 1:09 PM UTC
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What this means: This supports a positive long-term outlook. USDC is being seen as a bridge for traditional finance to move onto blockchain technology, especially for handling Treasury bills. While actual integration with government debt is still in early stages, this points to growing interest from big financial players.
3. @TokenFundament1: Stability meme neutral
“You’re not truly bearish until you’re paying to short USDC on Binance”
– @TokenFundament1 · September 1, 2025, 3:13 PM UTC
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What this means: This joke reflects confidence in USDC’s price stability. Even though some traders are betting against USDC (shorting it), the small amount of short interest (0.17% of Binance’s USDC volume) suggests most people trust USDC to hold its value.
4. @Crypto_Pranjal: Airdrop farming fuel bullish
“Limitless’ $7M-funded prediction markets require 200 USDC volume for airdrop”
– @Crypto_Pranjal · September 7, 2025, 11:41 PM UTC
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What this means: This is a positive sign for USDC’s use in decentralized finance (DeFi). Some platforms are requiring users to trade a certain amount of USDC to qualify for rewards (airdrops), which encourages more people to use USDC and boosts demand.
Conclusion
The overall outlook for USDC is bullish, supported by strong regulatory compliance and growing use in DeFi. However, some market jokes suggest a bit of complacency. Keep an eye on the 30-day net mint/burn ratio (currently -0.036%) to see how institutional demand changes as MiCA’s stablecoin rules become fully enforced.
What is the latest news about USDC?
USDC is expanding its role in decentralized finance (DeFi) and traditional banking. Here’s what’s new:
- Hyperliquid Integration (September 13, 2025) – Testing native USDC on a leading derivatives platform.
- Supply Increase (September 6, 2025) – USDC circulation reaches $72.5 billion due to growing demand.
- Banking Partnership (July 29, 2025) – Collaboration with FIS brings USDC to U.S. banks for faster payments.
In-Depth Look
1. Hyperliquid Integration (September 13, 2025)
What’s happening: Circle, the company behind USDC, is testing native USDC transactions on Hyperliquid’s HyperEVM mainnet. A wallet linked to Circle recently bought $4.6 million in HYPE tokens, showing a closer partnership. Hyperliquid’s derivatives platform processed $5.85 billion in USDC last month. On September 14, a vote may approve USDH as Hyperliquid’s own stablecoin.
Why it matters: This move increases USDC’s use in derivatives trading and across different blockchain networks. If USDH is approved, Hyperliquid might rely less on USDC for its $5.5 billion assets under management, but Circle could still play a key role as the reserve holder. (Gate.io)
2. Supply Increase (September 6, 2025)
What’s happening: USDC’s circulating supply grew by $2 billion in one week, reaching $72.5 billion. Circle reports reserves of $72.6 billion, including $94 billion in cash and $63.2 billion in U.S. Treasury securities. This reflects strong demand from institutional investors for stable, regulated digital dollars.
Why it matters: The growth matches a record high of $70 billion in stablecoin reserves on exchanges, showing that liquidity is ready for market activity. USDC’s transparent backing contrasts with Tether’s dominance but is closing the gap to a 2.5:1 ratio. (X (zdxg119))
3. Banking Partnership (July 29, 2025)
What’s happening: Circle teamed up with FIS, a major financial technology provider, to integrate USDC into FIS’s Money Movement Hub. This allows U.S. banks to process USDC transactions 24/7. The partnership benefits from the GENIUS Act, which provides clear regulations for digital assets.
Why it matters: This deal connects traditional banking with cryptocurrency, enabling banks to offer faster payments with lower fees. USDC now represents 74.6% of institutional over-the-counter (OTC) trades in Europe, according to Finery Markets. (CoinMarketCap)
Conclusion
USDC’s growth is driven by its integration into DeFi, alignment with regulations, and partnerships with banks. The Hyperliquid collaboration could boost derivatives trading, while the FIS partnership strengthens USDC’s role in traditional finance. As regulations like MiCA and the GENIUS Act take effect, USDC may become the leading regulated stablecoin in the market.
What is expected in the development of USDC?
USDC’s plan focuses on making it easier to use across different blockchains, working more closely with big financial institutions, and launching new blockchain technology.
- Arc Blockchain Testnet (Fall 2025) – A new blockchain where USDC will be used to pay transaction fees.
- Corpay FX Integration (2025) – Allow businesses to settle USDC payments anytime through global payment networks.
- FIS Banking Partnerships (Fall 2025) – Enable thousands of U.S. banks to handle USDC transactions.
- USDH Stablecoin Governance (September 14, 2025) – A vote to decide if USDH, a USDC-backed stablecoin, becomes the main stablecoin for Hyperliquid.
Deep Dive
1. Arc Blockchain Testnet (Fall 2025)
Overview: Circle is building Arc, a new blockchain where USDC will be the native token used to pay for transaction fees (called “gas”). The public test version is expected in Fall 2025. This aims to create a special platform focused on financial services using stablecoins like USDC.
What this means: This is good news for USDC’s growth, as it could become the go-to stablecoin for transactions. However, there are risks in building new technology, and it will face competition from established blockchains like Solana and Base.
2. Corpay FX Integration (2025)
Overview: Circle is partnering with Corpay to integrate USDC into their global foreign exchange and commercial card systems. This will allow businesses to move USDC funds anytime, with on-chain settlements.
What this means: This is somewhat positive, expanding USDC’s use in traditional finance. But it will compete with other stablecoins like PayPal’s and face regulatory challenges under the GENIUS Act.
3. FIS Banking Partnerships (Fall 2025)
Overview: Circle is teaming up with fintech leader FIS to let thousands of U.S. banks offer USDC transactions through the FIS Money Movement Hub.
What this means: This is a strong step toward getting big financial institutions to use USDC, bridging traditional banking and crypto. The main risk is that banks may take longer than expected to adopt this.
4. USDH Stablecoin Governance (September 14, 2025)
Overview: Hyperliquid will hold a vote on whether to adopt USDH, a stablecoin backed by USDC. If approved, about $5.5 billion in liquidity could shift to USDC-based systems.
What this means: If the vote passes, it will boost USDC’s use in decentralized finance (DeFi). If not, competitors like Tether’s USDT might benefit instead.
Conclusion
USDC’s roadmap aims to make it a key player in both institutional finance and cross-chain transactions. The launch of Arc’s blockchain and partnerships with banks like FIS are central to this goal. How well USDC performs will depend on regulatory developments under the GENIUS Act and whether Arc’s testnet can attract users away from existing blockchains.
What updates are there in the USDC code base?
USDC is expanding its ability to work across multiple blockchains and increasing its use by businesses through recent updates.
- CCTP V2 on Codex (June 24, 2025) – Enables cross-chain transfers for business-to-business payments.
- Native USDC on World Chain (June 11, 2025) – Automatically upgraded 2 million wallets to a fully compliant stablecoin.
- Solana Default via Squads (August 13, 2025) – USDC is now the preferred stablecoin for decentralized finance (DeFi) and payments on Solana.
Deep Dive
1. CCTP V2 on Codex (June 24, 2025)
Overview:
Circle launched the second version of its Cross-Chain Transfer Protocol (CCTP) on Codex, a blockchain designed for business foreign exchange (FX) transactions. This update allows USDC to move quickly and securely across more than 10 different blockchains.
Developers can now create payment solutions that comply with regulations using Codex’s Ethereum-compatible system. Businesses can also use Circle Mint to easily convert between USDC and traditional money, making large transactions smoother and faster.
What this means:
This is a positive development for USDC because it helps businesses send international payments faster and at a lower cost, while staying within legal rules. Lower risks when moving funds between blockchains could encourage more companies to use USDC.
(Source)
2. Native USDC on World Chain (June 11, 2025)
Overview:
World Chain switched from using bridged USDC (tokens moved from other blockchains) to issuing USDC natively on its own blockchain. This change automatically upgraded 2 million wallets to the compliant version of USDC. The update uses CCTP V2 to maintain liquidity across popular blockchains like Ethereum and Polygon.
What this means:
This change is neutral for USDC’s overall supply but improves how easily users on World Chain’s network—over 27 million people in 160 countries—can use USDC across different blockchains. This makes the experience smoother without increasing the total amount of USDC.
(Source)
3. Solana Default via Squads (August 13, 2025)
Overview:
USDC became the default stablecoin within Squads Protocol, a platform managing over $1 billion on Solana. It supports treasury management and payments linked to Visa cards.
What this means:
This is good news for USDC because integrating with Solana’s fast blockchain could boost its use in decentralized finance and everyday payments. This move challenges USDT’s current lead in these areas.
(Source)
Conclusion
USDC’s recent updates focus on making cross-chain transfers more efficient and building strong partnerships with key blockchains. These improvements strengthen USDC’s position as a reliable and compliant option for digital payments. The question now is whether Solana’s speed will help USDC catch up to USDT in decentralized finance.