8lends sticks to USDC (→ Article 1) as its only settlement currency. Everything from investments and interest to repayments and fees is in USDC. It's a stablecoin pegged 1:1 to the US dollar, issued by Circle Internet Financial (NYSE: CRCL). The reserves are held in cash at regulated US banks and in short-term US Treasury bonds (about 80% through the Circle Reserve Fund, managed by BlackRock). Deloitte publishes monthly attestation reports on the reserves. USDC gives investors dollar-based returns without the volatility of crypto, all on the fast and low-cost Base network (→ Article 1).
What is USDC
USDC (USD Coin) is a stablecoin pegged 1:1 to the US dollar. One USDC is always worth exactly one dollar because every token in circulation is backed by real reserves:
— About 80% of the reserves are in short-term US Treasury bonds, held through the Circle Reserve Fund—a government money market fund managed by BlackRock (ticker USDXX).
— About 20% are in cash at regulated US financial institutions.
You can always convert USDC back into dollars 1:1 through Circle's regulated partners (exchanges, banks). That makes it a cheap and fast way to move dollars on the blockchain.
Who issues USDC
Circle Internet Financial issues USDC. Key facts:
— Public company listed on the NYSE (ticker CRCL) since June 2025
— Founded in 2013; USDC launched in September 2018
— Operates under multiple regulatory frameworks at the same time
Circle's regulatory framework:
— GENIUS Act (USA) — a federal law for payment stablecoins, signed in July 2025. It requires 1:1 reserves held only in cash and short-term Treasury bonds, monthly attestation reports, and annual audits for large issuers.
— MiCA (European Union) — Circle got an Electronic Money Institution (EMI) licence in France from the ACPR in July 2024, allowing it to issue USDC and EURC across the EU under MiCA.
— NYDFS (New York) — licensed by the New York Department of Financial Services since 2018.
— Monthly attestation reports from Deloitte & Touche LLP (one of the Big Four), published at circle.com/transparency.
All this makes USDC one of the most well regulated stablecoins in the world.
Why 8lends Chooses USDC
1. Dollar peg without the volatility
8lends attracts investors looking for a fixed dollar income of 19–25% a year (→ Article 17), not speculative returns from crypto price swings. USDC provides that dollar anchor: invest 1,000 USDC, and at the end of the term you'll get back the equivalent of $1,000 plus interest—no matter what happens to the price of ETH or BTC.
2. Regulated issuance with transparent reserves
USDC's reserves are audited every month by an independent Big Four firm. The reports are published openly and anyone can verify them. That sets USDC apart from plenty of less transparent stablecoins.
3. Base network – low fees, fast transactions
8lends runs on Coinbase's Base network, a Layer 2 where gas fees cost just cents—not dollars like on Ethereum Mainnet. USDC is a native asset on Base through Circle's Cross-Chain Transfer Protocol (CCTP).
4. Global availability
USDC is available in almost every crypto wallet and on most exchanges. Investors from any country (aside from sanctioned ones → Article 5) can buy USDC through their usual channels and invest on 8lends without touching a bank transfer.
5. 24/7 settlements
USDC transactions happen around the clock, unlike bank transfers that are stuck with business hours and 1–5 day processing times. That matters for a platform serving a global audience across multiple time zones.
USDC vs USDT – why not Tether
Issuer — USDC: Circle Internet Financial (NYSE: CRCL) · USDT: Tether Limited
Jurisdiction — USDC: US, EU (MiCA), Switzerland · USDT: British Virgin Islands
Public company — USDC: yes (NYSE since June 2025) · USDT: no
Reserves — USDC: cash + short-term US Treasuries · USDT: cash, commercial paper, various assets
Auditor / transparency — USDC: Deloitte & Touche (monthly attestations) · USDT: past criticism over reserve disclosures
GENIUS Act compliance — USDC: fully compliant · USDT: not compliant (not registered in the US)
MiCA licence — USDC: obtained (France, July 2024) · USDT: not obtained in the EU
USDT has a larger total market cap and is more widely used in Asian markets. 8lends chose USDC because of its stricter regulatory framework and the transparency of its reserves.
How to buy USDC for investing
— Centralised exchanges — Binance, Coinbase, Kraken, Bybit, OKX, and others.
— Meld.io — built right into the 8lends interface; you can buy USDC directly with a card or Apple Pay / Google Pay.
— Decentralised exchanges (DEXs) — Uniswap, by swapping ETH for USDC on the Base network.
— Cross-chain transfers — move USDC from another network (Ethereum, Polygon) to Base via Circle's CCTP or bridges.
More on buying — Article 29.
Frequently Asked Questions
Could USDC lose its peg to the dollar?
Technically, yes. In March 2023, USDC briefly de-pegged to about $0.87 after a reserve issue at Silicon Valley Bank, but it returned to its peg within days. Since then, Circle has moved its reserves into a more stable structure—the Circle Reserve Fund, managed by BlackRock and Bank of New York Mellon. There are no guarantees, but the risk of losing the peg is very small given the current setup.
What if Circle goes bankrupt?
USDC reserves are held in a bankruptcy-remote structure through the Circle Reserve Fund. That means they're separate from Circle's own balance sheet and wouldn't be part of a bankruptcy estate. USDC holders keep a direct claim on those reserves. This is legally different from ordinary debt obligations.
Why Base and not Ethereum or Solana?
Base is Coinbase's Layer 2, built on OP Stack technology. The advantages: low fees (a few cents), fast transactions, native support for Circle's USDC via CCTP V2, and full EVM compatibility with Ethereum. USDC also runs on Solana, but 8lends picked Base for its tight integration with the Coinbase ecosystem and how well it works with MetaMask and other EVM wallets.
Do I earn any income from the USDC reserves?
No. Under the GENIUS Act, payment stablecoin issuers can't pass on yield from reserves to token holders. The income from those Treasury bonds goes to Circle, not to you. The 19–25% yield on 8lends comes entirely from lending to borrowers—it has nothing to do with USDC reserves.
Can I use other stablecoins on 8lends?
No. The platform works exclusively with USDC. That keeps the smart contract operations simple and cuts out the extra risk that comes with less regulated stablecoins.
Where can I check the current state of USDC reserves?
At circle.com/transparency, Circle publishes monthly attestation reports from Deloitte, the breakdown of reserves, the weighted average maturity of the Treasury portfolio, and the list of banks holding the cash reserves.
See also: How the 8lends platform works → Article 4. How to buy or exchange cryptocurrency → Article 29. What is 8lends → Article 2. Glossary → Article 1.
Risk disclosure: USDC, like any stablecoin, carries a risk of losing its dollar peg in extreme market conditions. The current reserve structure minimises that risk, but doesn't remove it entirely. 8lends is a platform operated by Alpha Systems LLC, a registered VASP supervised by the FSA of Saint Vincent and the Grenadines. Maclear AG (Switzerland), a member of PolyReg SRO supervised by FINMA, acts as Collateral Agent. Regulatory framework as of May 2026.