Mint
The process of creating new stablecoin tokens by depositing an equivalent amount of fiat currency.
When an institution deposits $1 million with Circle, Circle mints 1 million new USDC tokens. The dollars go into reserve, and the tokens go to the depositor's wallet. This is how new USDC enters circulation.
Minting is typically done by institutional partners and exchanges, not individual users. When you "buy" USDC on Coinbase, you're buying already-minted tokens on the secondary market. The supply of USDC grows when more dollars are deposited and shrinks when tokens are redeemed (burned).
Related Terms
Redeem
The process of exchanging stablecoin tokens for their underlying fiat currency value, effectively burning the tokens.
USDC (USD Coin)
A regulated, fully-backed stablecoin pegged to the U.S. dollar. Each USDC is redeemable for $1.
Reserves
The pool of real-world assets (U.S. Treasuries, cash) held to back each USDC token at a 1:1 ratio.
Peg
The target price a stablecoin is designed to maintain, typically $1.00 for dollar-pegged stablecoins.
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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.