What is USD Coin(USDC) ? A thorough explanation of its features, future prospects, and how to use it in Japan!

USD Coin (USDC) is the second most traded stablecoin in the cryptocurrency market after Tether (USDT). It is pegged to the US dollar and issued in compliance with US regulations.

This article explains the features, advantages and disadvantages of USDC, as well as the latest trends.

Current price: 146.37 yen

As of April 4, 2025 (CoinMarketCap "USD Coin (USDC) Price, Chart, Market Cap")

USDC is widely used on cryptocurrency exchanges and DeFi (decentralized finance) platforms as a stablecoin pegged to the value of the US dollar. Its current market cap ranking (as of April 4, 2025) is 6th.

Stablecoins provide price stability by issuing assets such as fiat currency or cash equivalents as backing assets. Because of their stable price, they are highly valued in the volatile cryptocurrency market and are used by many users.

Definition of USDC

USDC is a stablecoin pegged 1:1 to the US dollar and is issued by Circle, a US company. It is traded worldwide as the second most stablecoin after USDT. Users can use USDC to trade crypto assets and send and receive money overseas while enjoying price stability.

History of USDC

USDC was issued in 2018 through CENTRE, a consortium jointly established by Circle and the US cryptocurrency exchange Coinbase. Since then, it has grown rapidly, with its use at a variety of exchanges.

It has been known as a strict stablecoin that complies with US laws from an early stage, and is said to surpass USDT in terms of safety and transparency.

Price stability

The biggest feature of USDC is its price stability. Because its value is backed by the US dollar, its price fluctuations are small, making it widely used when trading crypto assets.

Supports multiple blockchains

USDC supports multiple blockchains, including Ethereum, which increases its compatibility with other blockchain platforms and allows users to use USDC in a variety of environments.

Possible use cases

USDC can be used as a means of payment and in DeFi. In particular, it is used on DeFi platforms for lending and liquidity provision (yield farming). In addition, general centralized exchanges also offer USDC lending services, and are used mainly by users who are not familiar with DeFi.

Buying on an exchange

USDC can be purchased mainly from overseas cryptocurrency exchanges. For example, major exchanges such as Coinbase and Binance make it easy to purchase USDC.

Recently, SBI VC Trade, a Japanese cryptocurrency exchange, has begun handling USDC. This means that Japanese cryptocurrency users can also purchase USDC through SBI VC Trade.

Select a wallet to manage

You also need to think carefully about how to manage your USDC. It's fine to manage it at a cryptocurrency exchange, but if you plan to use it frequently, it's a good idea to prepare a wallet and manage it there.

Recommended wallets include MetaMask and Trust Wallet, as well as Ledger and Trezor, which are cold wallets isolated from the internet.

Cryptocurrency exchange and DeFi operations

USDC can be used on cryptocurrency exchanges and DeFi platforms. For example, on DeFi platforms such as Aave and Compound, you can earn interest by depositing USDC. It can also be used as an asset for liquidity provision (yield farming) and earn interest.

In addition, major cryptocurrency exchanges and other institutions are increasingly offering lending services that allow you to deposit USDC and earn interest.

Use as a payment method

USDC is also used as a means of payment for international remittances and e-commerce. In particular, by introducing USDC to businesses, it becomes possible to send money quickly and at low cost. In fact, the number of cases in which various businesses use USDC is increasing.

Market volatility

Although the price of USDC is stable, there is no guarantee that its value will remain stable. For example, the price of USDC may fluctuate significantly if the supply and demand balance is disturbed or the price of the US dollar fluctuates wildly.

Although the price is stable, keep in mind that, like other cryptocurrencies, sudden price fluctuations can result in losses.

Regulatory impact

Although USDC complies with US regulations, it may be affected by regulatory trends in other countries, such as being unable to trade. In addition, it may be in competition with CBDCs (Central Bank Digital Currencies) and other stablecoins, so future developments will require attention.

Market growth forecast

As the cryptocurrency market expands, it is likely that the circulation and market capitalization of USDC will continue to increase. In addition, demand from companies and institutional investors is currently on the rise, which will likely lead to further expansion of the use of USDC.

Outlook for the Japanese market

In March 2025, domestic cryptocurrency exchange SBI VC Trade began handling USDC. When Circle started handling USDC, it announced that it would strengthen its collaboration with SBI Holdings, indicating its intention to accelerate its expansion in Japan in the future.

In addition, according to Circle, domestic cryptocurrency exchanges such as bitFlyer, bitbank, and Binance Japan also have plans to handle USDC, so it is expected that the number of domestic cryptocurrency exchanges handling USDC will continue to increase in the future.

So far, we have been explaining about USDC (USD Coin). USDC is a stable coin with the second highest trading volume after Tether (USDT) and plays an important role in the cryptocurrency market. In particular, since it is pegged 1:1 to the US dollar, its price is highly stable and it is an option for users to preserve their assets.

In addition, USDC is becoming increasingly important both inside and outside the cryptocurrency industry due to its price stability, transparency, and diverse use cases. Paying attention to future market growth and its popularity in Japan, considering the use of USDC will be a meaningful option for investors and companies.

Image: Shutterstock

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