ERC-20
A technical standard for fungible tokens on Ethereum and compatible blockchains. USDC is an ERC-20 token.
ERC-20 defines a common set of rules that tokens must follow on Ethereum. It specifies functions like transfer, approve, and balanceOf that every ERC-20 token implements. This standardization means any wallet, exchange, or DeFi app that supports ERC-20 tokens automatically works with USDC.
The standard was introduced in 2015 and has become the foundation for thousands of tokens. On Layer 2 networks like Base, Arbitrum, and Optimism, USDC follows the same ERC-20 standard since these chains are Ethereum-compatible.
On non-EVM chains like Solana, USDC uses that chain's native token standard (SPL for Solana) instead.
Related Terms
Smart Contract
Self-executing code deployed on a blockchain that automatically enforces the terms of an agreement.
Blockchain
A distributed, immutable digital ledger that records transactions across a network of computers.
Layer 2 (L2)
A secondary network built on top of a Layer 1 blockchain to increase speed and reduce transaction costs. Examples: Base, Arbitrum, Optimism.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.