USDC is a digital stablecoin redeemable on a 1:1 basis for US dollars. Circle, as the issuer, ensures that each USDC token is fully supported by either a dollar or asset denominated in dollars, which are securely held in the custody of reputable financial institutions. The holdings held by Circle undergo monthly reviews conducted by Grant Thornton LLP, a respected third-party accounting firm, to verify that USDC remains fully backed. Originally launched as an ERC-20, USDC has been deployed across multiple layer one and layer two blockchain networks, including Ethereum, Solana, Arbitrum, and more.

Circle, a payment technology company established in 2013 by Jeremy Allaire and Sean Neville. In 2015, Circle obtained the first “BitLicense” from the New York Department of Financial Services, which facilitated the development of its digital asset services in New York.

Risks of USDC

Like an investment in other crypto assets, there are some general risks to investing in USDC. These include: (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in USDC is subject to the following specific risks:

Although USDC provides monthly and historical attestations, there is still a possibility of the USDC token temporarily deviating from its peg in times of significant volatility or disruptions to the custody provider’s financial stability. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with USDC. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The aforementioned founders and Circle are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of USDC have no recourse to founder, Circle, or Uphold if USDC declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing USDC on the Uphold Platform, Uphold performed due diligence on USDC and determined that USDC is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

The creation, governance, usage, and design of USDC, including ensuring the source code is open-source, audited and peer reviewed, security and monthly attestations.

The supply, demand, maturity, utility, and liquidity of USDC.

Any marketing materials put forward by the USDC social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

Material technical risks associated with USDC, including any code defects, security breaches and other threats concerning USDC and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.

Legal and regulatory risks associated with USDC, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of USDC.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website including the Risks Specific To Holding Digital Assets statement. 

Last updated on January 22, 2024.