Cryptoassets are high-risk investments and may not be suitable for all investors. Their prices can be highly volatile, and you could lose some or all of the money you invest.
Cryptoassets are not regulated in the same way as traditional investments and are not covered by the Financial Services Compensation Scheme (FSCS). Protection from the Financial Ombudsman Service (FOS) is limited.
During periods of extreme market volatility, liquidity may be reduced, which can affect your ability to buy or sell crypto at your desired price.
You should take time to understand how crypto works and the risks involved before investing. For more information, visit IG’s Crypto Risks page.
What is USDC?
What is USDC?
USDC (USD Coin) is a stablecoin – a type of cryptocurrency designed to maintain a stable value pegged 1:1 to the US Dollar.
Key characteristics:
1 USDC aims to equal $1 USD
Backed by fully reserved assets
Launched in 2018 by Circle and Coinbase
Transparent, regularly audited reserves
ERC-20 token on the Ethereum blockchain
Unlike Bitcoin or Ethereum, USDC doesn't experience significant price volatility.
Why use USDC?
Why use USDC?
1. Stability during market volatility
When cryptocurrency markets are turbulent:
Lock in profits without converting to cash
Maintain purchasing power for future trades
Avoid exposure to price swings
2. Hold USD-denominated value
USDC allows you to:
Maintain exposure to USD within your crypto portfolio
Protect against GBP depreciation relative to USD
Keep funds ready within the crypto ecosystem
3. Diversify your crypto portfolio
Add a stable asset alongside volatile cryptocurrencies
Reduce overall portfolio volatility
Balance risk across different asset types
How USDC appears in your portfolio?
How USDC appears in your portfolio?
Visual separation for clarity:
Your portfolio displays:
Crypto: All non-stablecoin holdings (Bitcoin, Ethereum, etc.)
Stablecoins: USDC shown separately
Total account value: Combined total of crypto + stablecoins
Profit & Loss: Overall P&L across all holdings
Why separate?
USDC behaves differently from volatile cryptocurrencies, so displaying it separately helps you understand your portfolio composition.
Trading with USDC
Trading with USDC
Buying USDC:
Use GBP from your IG accounts
Same 1.49% spread applies
USDC appears in your stablecoins section
Selling USDC:
Convert back to GBP at any time
Proceeds return to your selected IG account
Same 1.49% spread applies
USDC vs cash in your IG accounts
USDC vs cash in your IG accounts
Important differences:
USDC | Cash in IG Accounts |
Cryptocurrency asset | GBP currency |
Held in crypto portfolio | Held in Share Dealing/CFD/Spread Bet |
Pegged to USD | British Pounds |
Subject to market conditions | Standard currency |
Cannot fund other IG products | Can fund all IG products |
Important: You cannot use USDC to fund CFDs, Share Dealing, or Spread Betting. USDC remains within the crypto ecosystem only.
To use funds for other IG products:
Sell USDC for GBP
Proceeds go to your selected IG account
Then use GBP for other products
Viewing USDC in diferrent currencies
Viewing USDC in diferrent currencies
In USD view:
In USD view:
USDC shows close to $1.00
Easy to see it's maintaining the peg
Natural way to view a USD-pegged asset
In GBP view:
In GBP view:
USDC value fluctuates with the GBP/USD exchange rate
Example: If 1 GBP = 1.25 USD, then 1 USDC ≈ £0.80
This reflects currency exchange movements, not USDC instability
Recommendation: When trading USDC, toggle to USD view to see the true 1:1 peg to the dollar.
Comman use cases for USDC
Comman use cases for USDC
1. Taking profits during a rally
Market scenario: Bitcoin up 20% and you want to secure gains
Sell BTC to USDC to lock in profits
Your value is now stable, protected from further price swings
Funds remain in your crypto portfolio, ready for future opportunities
2. Waiting for buying opportunities
Market scenario: Expecting a price drop and want to buy the dip
Hold USDC instead of volatile cryptocurrencies
When opportunity arrives, sell USDC and buy your desired crypto
Maintain stable value while you wait
3. Reducing volatility exposure
Market scenario: Uncertain market conditions
Move volatile holdings to USDC temporarily
Protect value without exiting crypto entirely
Re-enter volatile assets when you're ready
4. USD exposure for UK investors
Market scenario: You want exposure to USD strength
Hold USDC to benefit if USD strengthens against GBP
Diversify currency exposure within your portfolio
No need to open separate USD accounts
Risk Factors
Risk Factors
While USDC is designed for stability, be aware of:
Counterparty risk:
Relies on Circle maintaining proper reserves
Backed by audited, fully reserved assets
Regulatory risk:
Stablecoin regulations continue to evolve
Regulatory changes could impact USDC
Depegging risk:
Rare but possible during extreme market stress
Historical performance: maintained peg well
Exchange rate risk (for UK users):
When viewing in GBP, you're exposed to GBP/USD exchange rate movements
This is currency risk, not USDC risk
USDC and your crypto stratergy
USDC and your crypto stratergy
Best practices:
Use as a stable store of value within your crypto portfolio
Park profits temporarily without leaving crypto
View in USD when trading USDC to see the true peg
Understand it stays in crypto – cannot fund other IG products
Include in portfolio diversification as a stable allocation
What USDC is NOT:
Not a replacement for cash in your IG accounts
Not for funding other trading products
Not risk-free (though much lower risk than volatile cryptos)
For questions about USDC or stablecoins, contact our support team, contact our support team.