What could affect the price of USDC?
USDC’s ability to maintain its $1 value depends on changes in regulations, how widely it’s used, and the overall market liquidity.
- Regulatory compliance – New laws like the GENIUS Act and MiCA could strengthen USDC’s position.
- Institutional adoption – More use in decentralized finance (DeFi) and international payments.
- Competition – Tether leads the market, but USDC’s strong compliance gives it an edge.
Deep Dive
1. Regulatory Compliance (Positive Outlook)
Overview:
The U.S. passed the GENIUS Act in June 2025, requiring stablecoins to have insurance similar to FDIC protection. This benefits USDC because it follows strict auditing rules, unlike Tether, which has less transparent reserves. In Europe, the MiCA regulation demands stablecoin issuers keep 60% of their reserves in EU banks. This has led many exchanges to remove stablecoins that don’t comply. As a result, USDC now handles 74.6% of institutional over-the-counter (OTC) trades in Europe.
What this means:
These regulations favor USDC, making it the preferred stablecoin for institutions. This could reduce Tether’s current market cap lead of 2.5 times. Compliance may also attract more traditional financial partners, like Ant Group and Coinbase, which offer USDC-based yield-sharing programs.
2. Institutional Adoption (Mixed Outlook)
Overview:
USDC’s daily transaction volume reached $15.6 billion, a 53% increase from the previous quarter. This growth is driven by its use in DeFi platforms like World Chain and RedotPay, as well as cross-border payments. However, JPMorgan reports that altcoins are losing ground as Bitcoin’s dominance rises to 59%. This “risk-off” trend means investors are favoring Bitcoin over other cryptocurrencies, which could limit demand for stablecoins like USDC.
What this means:
USDC’s practical uses—such as sending money internationally and managing company funds—support its liquidity. But if Bitcoin continues to dominate, trading volumes for other coins, including USDC, might decrease, affecting how often USDC changes hands (currently a turnover ratio of 0.216).
3. Market Competition (Potential Challenges)
Overview:
Tether’s USDT controls 60.4% of the stablecoin market with a $162 billion market cap and provides high liquidity on exchanges. Meanwhile, MetaMask is rumored to be launching mmUSD with Stripe, which could challenge USDC’s popularity in retail wallets. Additionally, coins like Ethena’s USDe ($14.4 billion market cap) offer high yields by taking advantage of loopholes in the GENIUS Act.
What this means:
USDC doesn’t offer native interest like USDe’s 10.86% annual percentage yield (APY), which might cause it to lose some ground in DeFi. However, USDC’s clear regulatory status and availability on 21 different blockchains help balance these risks.
Conclusion
USDC is likely to keep its price stable, but its market share depends on gaining institutional trust amid stricter regulations and outperforming competitors in compliance. Keep an eye on the GENIUS Act’s final House vote—approval could establish USDC as the “digital dollar” for traditional finance, while delays might give Tether an advantage in liquidity.
What are people saying about USDC?
USDC is gaining momentum thanks to new regulations, even as some experts debate its core principles. Here’s what’s happening now:
- Circle is experimenting with reversible transactions, raising questions about decentralization
- USDC hits a $65 billion market cap, showing strong support from big financial players
- New EU rules (MiCA) encourage more use of USDC, as European exchanges move away from USDT
Deep Dive
1. @BitcoinWorldN: Reversible USDC Transactions? Mixed
“Is this the end of immutability or safer payments?”
– @BitcoinWorldN (289k followers · 1.2M impressions · 2025-09-25 08:00 UTC)
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What this means: This change has pros and cons. On one hand, it helps institutions recover from fraud more easily. On the other, it challenges the idea that blockchain transactions are permanent and final. It’s a trade-off between traditional finance needs and the decentralized spirit of crypto.
2. @WuBlockchain: Coinbase Gobbles USDC Supply Bullish
“Coinbase now holds 23% of USDC supply – becoming Circle’s likely acquirer”
– @WuBlockchain (892k followers · 2.8M impressions · 2025-05-31 05:31 UTC)
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What this means: This is good news for USDC’s availability and regulatory compliance. However, if one exchange controls too much of the supply, it could lead to centralization risks, which goes against crypto’s decentralized ideals.
3. @SeiNetwork: $6.2T Treasury Onramp Bullish
“USDC bridges institutional yield to blockchain”
– @SeiNetwork (214k followers · 587k impressions · 2025-07-16 13:09 UTC)
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What this means: This points to strong future growth. USDC is becoming the main way for big investors to bring traditional government-backed securities (like Treasury bills) into decentralized finance (DeFi), tapping into a $6.2 trillion market.
Conclusion
Overall, the outlook for USDC is positive, supported by favorable regulations. While concerns about centralization remain, compliance with EU rules (MiCA) and backing by BlackRock-managed reserves (mostly Treasury bills) build trust among institutions. Circle’s testing of reversible transactions shows the challenge of balancing traditional finance demands with crypto’s original principles. Keep an eye on the GENIUS Act vote—if passed, its FDIC-like insurance could strengthen USDC’s position over USDT in regulated markets.
What is the latest news about USDC?
USDC is adapting to new regulations and expanding its use in everyday business, while Coinbase explores new ways to grow revenue. Here are the key updates:
- Crypto.com Applies for Bank Charter (October 24, 2025) – Seeking approval from U.S. regulators, following a trend among crypto companies to become more like traditional banks.
- WSPN Launches Stablecoin Checkout (October 24, 2025) – Allows online stores to accept USDC and other stablecoins for faster, cheaper payments worldwide.
- JPMorgan Upgrades Coinbase (October 24, 2025) – Highlights potential growth from Coinbase’s new Base token and USDC rewards program.
In-Depth Look
1. Crypto.com Applies for Bank Charter (October 24, 2025)
What happened: Crypto.com has applied to become a national trust bank with the U.S. Office of the Comptroller of the Currency (OCC). This move puts them alongside companies like Circle and Coinbase that are seeking official banking status. If approved, Crypto.com could offer secure custody services and access the Federal Reserve’s payment system through special accounts.
Why it matters: This shows increasing interest from big players in making cryptocurrency services more regulated and trustworthy. While this doesn’t directly change USDC, it supports the overall trend of stablecoins becoming part of the regulated financial system. (Decrypt, Yahoo Finance)
2. WSPN Launches Stablecoin Checkout (October 24, 2025)
What happened: WSPN Checkout now lets merchants accept payments in USDC, USDT, and WUSD on popular blockchain networks like Ethereum and Solana. This system offers instant payment settlements and lower fees, especially useful for international sales.
Why it matters: This is a positive step for USDC’s growth. By making it easier for online businesses to accept stablecoins, WSPN is helping bridge the gap between cryptocurrency and everyday shopping. USDC’s strong regulatory compliance could make it a preferred choice for business-to-business transactions. (crypto.news)
3. JPMorgan Upgrades Coinbase (October 24, 2025)
What happened: JPMorgan raised its rating on Coinbase to “overweight,” pointing to potential gains from Coinbase’s upcoming Base token (which could reach a market value between $12 billion and $34 billion) and a new USDC rewards program offering 4% returns for Coinbase One subscribers.
Why it matters: This is cautiously optimistic for USDC. Coinbase’s ability to earn from USDC holdings could strengthen its partnership with Circle, the company behind USDC. However, decentralized finance options still pose competition. (CoinDesk)
Conclusion
USDC’s future depends on staying compliant with regulations, gaining wider business use, and offering attractive rewards. Partnerships like WSPN’s stablecoin checkout expand its reach in commerce, while Coinbase’s strategies could boost demand from larger investors. As global rules around stablecoins become clearer, USDC’s transparency might help it compete with Tether’s liquidity advantage.
What is expected in the development of USDC?
USDC’s roadmap is focused on making it easier to use across different blockchains and integrating it more deeply with traditional financial institutions.
- Circle Gateway Mainnet Launch (Q4 2025) – A single USDC balance accessible instantly across multiple blockchains.
- Corpay Global Payments Integration (2025) – Using USDC in global currency exchange and business payment cards.
- Coinbase Derivatives Collateral Support (2026) – Allowing USDC to be used as collateral for crypto futures trading.
- CCTP V2 Expansion (Ongoing) – Improving crosschain USDC transfers with more blockchain support.
Deep Dive
1. Circle Gateway Mainnet Launch (Q4 2025)
Overview: Circle Gateway is a technology that lets users hold one USDC balance that works across multiple blockchains like Avalanche and Ethereum. Transfers happen in under half a second. It’s currently being tested and aims to reduce the need for institutions to hold USDC separately on each blockchain.
What this means: This is a positive step for USDC adoption because it makes managing USDC across different blockchain networks simpler, especially for decentralized finance (DeFi) and institutional users. However, there is some risk related to potential software bugs as the system scales.
2. Corpay Global Payments Integration (2025)
Overview: Circle is partnering with Corpay Inc., a major payments company, to integrate USDC into Corpay’s foreign exchange (FX) and commercial card services. This will help businesses make faster cross-border payments using USDC.
What this means: This could increase USDC’s use in traditional finance, especially for international business payments. Success depends on regulatory approval in the many countries where Corpay operates.
3. Coinbase Derivatives Collateral Support (2026)
Overview: Coinbase Derivatives plans to let traders use USDC as collateral for crypto futures trading, overseen by the Commodity Futures Trading Commission (CFTC). They are working with Nodal Clear to make this happen. This removes delays caused by converting between fiat currency and crypto.
What this means: This is a strong positive for USDC’s role in regulated markets and could increase demand from professional traders. However, regulatory approvals could delay the rollout.
4. CCTP V2 Expansion (Ongoing)
Overview: The Cross-Chain Transfer Protocol (CCTP) V2 allows USDC to move securely between different blockchains without needing a middleman. It’s expanding to new networks like Hyperliquid and other Layer 1 and Layer 2 blockchains. New features like “Hooks” enable automatic actions after transfers, such as swapping tokens.
What this means: This improves how decentralized finance apps can work together using USDC, but success depends on smooth integration with new blockchains like Sei and Sonic.
Conclusion
USDC’s roadmap focuses on making it easier to use across different blockchains and integrating with traditional finance systems. This strengthens USDC’s position as a bridge between crypto and conventional money. With clearer regulations under the GENIUS Act, the key question is how quickly USDC can leverage its partnerships to outpace competitors like USDT.
What updates are there in the USDC code base?
USDC is improving how it works across different blockchains and strengthening its connections with various blockchain networks.
- CCTP V2 on Hyperliquid (August 1, 2025) – Users can now transfer USDC directly between blockchains without using bridges.
- Native USDC on World Chain (June 12, 2025) – World Chain replaced bridged USDC tokens with USDC issued directly by Circle.
- XDC Network Integration (August 29, 2025) – USDC launched natively on XDC Network, enabling secure cross-chain transactions.
Deep Dive
1. CCTP V2 on Hyperliquid (August 1, 2025)
What happened: Circle updated its Cross-Chain Transfer Protocol (CCTP) to version 2 and integrated it with Hyperliquid. This allows users to move USDC directly between blockchains like Ethereum and Solana without relying on wrapped tokens or third-party bridges.
Why it matters: Removing bridges reduces security risks and makes it easier for developers to create apps that use USDC across multiple blockchains. This could lead to more use of USDC in decentralized finance (DeFi) and by institutions. (Source)
2. Native USDC on World Chain (June 12, 2025)
What happened: World Chain switched over 2 million wallets from bridged USDC tokens to native USDC issued directly by Circle. They also added support for CCTP V2, which speeds up transfers between blockchains and improves payment options for institutions.
Why it matters: This change mainly strengthens trust and transparency, making it easier for developers to build payment and DeFi tools using USDC. It doesn’t drastically change USDC’s overall supply but improves its reliability. (Source)
3. XDC Network Integration (August 29, 2025)
What happened: USDC launched natively on the XDC Network, a blockchain designed for trade finance. It uses CCTP V2’s “burn-and-mint” method to securely move USDC across blockchains.
Why it matters: This expands USDC’s use beyond DeFi into real-world business applications like cross-border payments, combining XDC’s compliance features with USDC’s regulatory clarity. (Source)
Conclusion
USDC’s recent updates focus on making it easier to use across different blockchains and appealing to institutional users. The Cross-Chain Transfer Protocol V2 is becoming a key part of its infrastructure. Looking ahead, how regulatory clarity around cross-chain stablecoins will affect USDC’s position in 2026 remains an important question.