What could affect the price of USDC?
USDC’s dollar peg faces some challenges, even though it’s designed to stay stable.
- Regulatory Changes – New U.S. and EU rules could increase compliance requirements or add costs.
- Institutional Use – Big companies and traditional financial firms are adopting USDC, boosting its usefulness.
- Stablecoin Competition – Tether leads in market share, but USDC’s transparency is changing the game.
Deep Dive
1. Regulatory Compliance (Mixed Impact)
Overview: The U.S. GENIUS Act, approved by the Senate in June 2025, requires stablecoins to have insurance similar to FDIC coverage. This benefits USDC because it already follows strict audit rules. In Europe, the MiCA regulation forced exchanges to remove stablecoins that don’t comply, helping USDC capture 74.6% of institutional over-the-counter trades there (Finery Markets). However, tougher reserve rules might reduce Circle’s earnings from its $14 billion in Treasury holdings.
What this means: These regulations could make USDC the preferred “compliant” stablecoin for institutions. But tighter rules might also reduce Circle’s profits, limiting how much they can invest in growth.
2. Traditional Finance Integration (Positive Impact)
Overview: Companies like Ant Group started using USDC for international payments in July 2025. Intuit plans to support USDC in TurboTax and QuickBooks. Visa processes $12 billion in USDC monthly through the Solana network, and Corpay is enabling 24/7 USDC payments for small and medium businesses (CoinMarketCap).
What this means: As USDC becomes part of everyday business payments, demand grows. Even a small shift—like 1% of global business-to-business payments moving to USDC—could mean over $80 billion more USDC minted, helping keep its value stable.
3. Stablecoin Liquidity Competition (Potential Risk)
Overview: Tether still leads with a $175 billion market cap and dominates exchange liquidity. USDC’s supply has grown 40.4% this year to $76.5 billion, but its trading volume is about one-third of Tether’s. New stablecoins like PayPal’s PYUSD and MetaMask’s upcoming mmUSD could split demand among institutions.
What this means: USDC needs to keep high transaction activity (currently $15.6 billion daily) to compete. Losing a top exchange listing could hurt its ability to maintain price stability, risking short-term value drops.
Conclusion
USDC’s stability depends on balancing regulatory compliance with strong liquidity, while growing enterprise use supports steady demand. The U.S. GENIUS Act and Europe’s MiCA rules favor USDC’s transparent approach, but Tether’s strong market position and new competitors like PYUSD present real challenges.
Watch: Circle’s Q1 2026 reserve reports and upcoming House votes on GENIUS Act changes—especially whether interest-bearing features will be allowed under new regulations.
What are people saying about USDC?
I wasn’t able to find enough information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. In the meantime, please feel free to choose another question or cryptocurrency for analysis.
What is the latest news about USDC?
USDC is benefiting from supportive regulations and growing use by big institutions, but it’s also facing challenges due to changes in interest rates. Here’s the latest update:
- Circle’s IPO Boost & Federal Reserve Rate Cuts (Dec 27, 2025) – Circle’s shares tripled on their New York Stock Exchange debut but later slowed down as Fed rate cuts lowered USDC’s earnings.
- Stricter UK Stablecoin Rules (Dec 27, 2025) – New 2026 regulations favor compliant companies like Circle over others like Tether.
- Bybit & MEXC Increase USDC Trading Options (Dec 8-19, 2025) – These major exchanges expanded USDC trading pairs and introduced zero-fee conversions.
In-Depth Look
1. Circle’s IPO Boost & Federal Reserve Rate Cuts (Dec 27, 2025)
Summary: Circle’s stock price jumped to $93 shortly after its debut on the NYSE, causing several trading pauses. However, after the Federal Reserve cut interest rates in late 2025, the returns Circle earns from USDC’s Treasury-backed reserves dropped. This raised questions about how much Circle depends on interest income for its profits.
What this means: The IPO showed that USDC is gaining trust among big investors (Decrypt), but lower interest rates could hurt Circle’s earnings. Investors are now watching if the growth in USDC transactions—which increased 53% quarter-over-quarter to $15.6 billion daily—can make up for the lower yields.
2. Stricter UK Stablecoin Rules (Dec 27, 2025)
Summary: The UK finalized new rules for stablecoins starting in 2026. Companies like Circle and Tether must register with the Financial Conduct Authority (FCA) to operate with British pounds. While USDC remains available on exchanges, the rules favor Circle’s compliance-focused approach over Tether’s offshore setup.
What this means: Because Circle is already registered with the FCA, it’s well-positioned to handle institutional payments in the UK. Tether might need to work with middlemen to offer services there (Yahoo Finance). This could help USDC strengthen its position in regulated markets.
3. Bybit & MEXC Increase USDC Trading Options (Dec 8-19, 2025)
Summary: Bybit made USDC its main stablecoin for trading and savings, while MEXC added USDC trading pairs for coins like EPIC, REZ, XAI, and CVX. Both exchanges now offer free USD to USDC conversions through banking partners such as Standard Chartered.
What this means: These updates improve USDC’s liquidity, especially in markets for derivatives and alternative cryptocurrencies (Cryptopotato). With over 60 million users on these platforms, USDC’s use is expanding beyond just Ethereum-based decentralized finance (DeFi).
Conclusion
USDC saw strong growth in 2025, with its supply increasing by 40.4%, but it also faced challenges from regulatory changes and economic factors. Compliance with European regulations and partnerships with exchanges are helping USDC grow in Europe and Asia. However, sensitivity to interest rates and competition from Tether’s liquidity remain hurdles. Will USDC surpass USDT in transaction volume in 2026, or will lower yields slow its progress?
What is expected in the development of USDC?
USDC’s 2026 roadmap focuses on expanding everyday use and improving technology:
- Cash App Integration (Early 2026) – Allow over 50 million users to send and receive USDC directly in the app.
- Visa USDC Payment Services (2026) – Enable U.S. banks to process payments using USDC.
- TurboTax/QuickBooks Integration (2026) – Use USDC for tax refunds and business payments.
- GENIUS Act Compliance (2026) – Meet new U.S. rules for stablecoins.
- Cardano Exploration (TBD) – Possible launch of USDC on the Cardano blockchain.
Deep Dive
1. Cash App Integration (Early 2026)
Overview: Block’s Cash App will let its 50 million+ users send and receive USDC easily within the app. This uses Circle’s technology for fast transactions and low fees (Circle). This move builds on Circle’s existing partnerships with Visa and Stripe.
What this means: This is positive for USDC adoption because it brings crypto payments to everyday users. However, delays could happen if regulators raise concerns.
2. Visa USDC Payment Services (2026)
Overview: Visa plans to allow U.S. banks to settle payments using USDC through Circle’s blockchain infrastructure. This will speed up cross-border payments (CoinMarketCap).
What this means: This won’t affect USDC’s price since it’s a stablecoin, but it strengthens its use in traditional finance. Regulatory challenges remain a risk.
3. TurboTax/QuickBooks Integration (2026)
Overview: Circle is partnering with Intuit to let people receive tax refunds via USDC (TurboTax) and make business payments (QuickBooks). This targets the large U.S. tax refund market, worth about $100 billion (Edward Park).
What this means: This could boost USDC’s real-world use and encourage more people and businesses to use it. However, making it easy for users to adopt will be important.
4. GENIUS Act Compliance (2026)
Overview: New U.S. laws will require stablecoins to hold reserves similar to FDIC insurance. USDC’s transparent and audited approach gives it an advantage over competitors like USDT (Bitget).
What this means: This is neutral for USDC’s long-term outlook. Compliance could strengthen trust but might reduce earnings from reserve investments.
5. Cardano Exploration (TBD)
Overview: There’s growing talk about launching USDC on the Cardano blockchain, though no official date has been set (tweet).
What this means: If it happens, it could help grow Cardano’s ecosystem. But delays could be a downside since Cardano’s decentralized finance (DeFi) space is less developed than others like Solana or Ethereum.
Conclusion
USDC’s 2026 plans focus on connecting traditional finance with crypto through regulated partnerships like Visa and Cash App, plus tax-related uses. At the same time, it’s preparing for new U.S. regulations and exploring technical improvements like faster cross-chain transfers and potential Cardano support. The big question is whether USDC can stay ahead of competition from government-backed digital currencies (CBDCs) and decentralized alternatives.
What updates are there in the USDC code base?
USDC’s latest updates focus on making it easier to use across different blockchains and building strong, secure systems for businesses.
- CCTP V2 on Codex (June 24, 2025) – Faster and simpler cross-border payments using automated cross-chain transfers.
- Native USDC on XRPL (June 12, 2025) – Better support for businesses and decentralized finance (DeFi) on the XRP Ledger.
- Sonic Labs Migration (May 13, 2025) – Moving from bridged USDC to native USDC with smart features for automatic transactions.
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-to-business stablecoin transactions. This allows USDC to move quickly—within seconds—between different blockchains, with trusted systems like Circle Mint helping businesses easily convert between USDC and traditional money.
What this means:
This is great news for USDC users because companies can now send payments worldwide faster and at a lower cost, while still following regulations. It also reduces risks linked to using third-party bridges, such as delays or losses. (Source)
2. Native USDC on XRPL (June 12, 2025)
Overview:
USDC is now directly supported on the XRP Ledger (XRPL), meaning businesses and DeFi platforms can use USDC without needing “wrapped” versions (copies of USDC on XRPL).
What this means:
This update is positive for USDC because it opens up new ways for businesses and DeFi projects to use USDC on XRPL. However, how much this helps depends on how widely XRPL is adopted by companies. (Source)
3. Sonic Labs Migration (May 13, 2025)
Overview:
Circle moved $500 million worth of bridged USDC on Sonic Labs to native USDC. This change works alongside CCTP V2 and introduces “Hooks,” which are smart contract features that can automatically trigger actions like instant payments.
What this means:
This is a positive step for USDC because native USDC is more secure and final, reducing dependence on third-party bridges. The Hooks feature allows for advanced uses, such as automatically managing company funds. (Source)
Conclusion
USDC’s latest improvements focus on making cross-chain transfers smoother and boosting business use. With CCTP V2 and native USDC on new blockchains, it’s becoming easier to use USDC globally. The big question is whether regulatory support will help USDC stay ahead of other types of stablecoins.