Token
A digital asset created on an existing blockchain. USDC is a token that runs on multiple blockchains.
Tokens are different from coins. A coin (like ETH or SOL) is the native currency of its blockchain. A token is built on top of someone else's blockchain using a smart contract. USDC is a token because it runs on Ethereum, Solana, Base, and other chains rather than having its own blockchain.
Tokens follow standards that ensure compatibility. On Ethereum and EVM chains, USDC follows the ERC-20 standard. On Solana, it uses the SPL standard. These standards mean any wallet or app that supports the standard automatically supports USDC.
Tokens can represent anything: stablecoins, governance rights, rewards, or even real-world assets. USDC is a specific type of token called a stablecoin.
Related Terms
ERC-20
A technical standard for fungible tokens on Ethereum and compatible blockchains. USDC is an ERC-20 token.
Smart Contract
Self-executing code deployed on a blockchain that automatically enforces the terms of an agreement.
Native Token
A token issued directly on a blockchain by its official issuer, as opposed to a bridged or wrapped version.
Blockchain
A distributed, immutable digital ledger that records transactions across a network of computers.
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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.