What is USDC
USD Coin (USDC) is a stablecoin pegged to the US dollar, issued by Circle, with reserves regularly audited by third parties — it's considered one of the more transparent stablecoins regarding its backing.
Like all stablecoins, it isn't designed to generate gains through price appreciation, but rather to serve as a stable liquidity instrument within the crypto ecosystem.
Frequently asked questions
Is USDC regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying USDC on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is USDC taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
