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Crypto Almanac Daily
C
Stablecoins

Circle USYC (USYC)

Best for collateralised issuance at scale

Circulating:$3,005m at this checkPeg mechanism:fiat-backedPeg type:peggedUSDChains:2Recorded price:1.1334 (13.34% from peg)Rubric:v2.0 · verified 9 Aug 2026
Kayla PetersonKayla PetersonDeFi Research Analyst· Last verified August 9, 2026
Confidence ARubric v2.0Verified August 9, 2026
7.9
out of 10
Open account
Scorecard

How it rates

Counterparty & backing risk · 45%8.0
Cost transparency · 5%10.0
Market quality · 15%2.0
Transparency & track record · 30%10.0
Public documentation surface · 5%10.0
Pros
  • $3,005m circulating, recorded independently
  • Collateralised model (fiat-backed)
  • Issued across 2 chains
Cons
  • Recorded price 1.1334 sits 13.3% from the peg at this check
How this score was built

Each indicator scores 2, 1 or 0. A pillar is the points earned over the points available; the overall score is the weighted sum. Every source below is public — check any of them yourself.

Counterparty & backing risk · 45% weight8/10 points · 8.0/10
Cost transparency · 5% weight10/10 points · 10.0/10
Market quality · 15% weight2/10 points · 2.0/10
Transparency & track record · 30% weight10/10 points · 10.0/10
Public documentation surface · 5% weight10/10 points · 10.0/10

A tokenised yield-bearing treasury instrument holding $3.01bn, whose price rises with accrued yield rather than tracking one dollar.

Our assessment

USYC has $3.01bn circulating and traded at 1.1334 at this check — 13.34% above a dollar. That is not a broken peg. It is a yield-accruing instrument whose value rises as interest accumulates, and reading it as a failed stablecoin is a misunderstanding worth correcting.

Accruing tokens versus rebasing tokens

There are two ways to pay yield on-chain: increase the number of tokens held, or increase the value of each token. USYC does the second, so one token is worth progressively more than a dollar. Our dataset classifies it among stablecoins and records a large deviation from parity — the classification is what is off, not the instrument.

What it actually is

A tokenised short-duration treasury instrument, aimed at institutional cash management rather than at payments. It is a place to hold dollars that earn, not a token to trade with. Anyone using it as a settlement asset would be exposed to a price that moves — by design, upward — which is not what a payment needs.

Read the mechanism before the price

This is the general lesson: a token trading meaningfully away from a dollar is either broken or not trying to be a dollar, and the difference is entirely in the mechanism. Falcon USD at 0.37% below parity and USYC at 13% above are opposite situations, and only one of them is a warning.

Who it suits

USYC fits institutions wanting on-chain treasury yield with a regulated issuer. Users needing a stable settlement asset should hold USDC — from the same issuer, and designed for that purpose.

Alternatives

How rivals compare

ServiceScoreBest for
USD Coin (USDC)9.9collateralised issuance at scaleRead →
Tether (USDT)9.9collateralised issuance at scaleRead →
Ethena USDe (USDe)9.7collateralised issuance at scaleRead →
Dai (DAI)9.7collateralised issuance at scaleRead →
Reference

Frequently asked

Does this score assess the quality of reserves?

No. Reserve attestations vary too much between issuers to compare from one public source. The score covers backing model, scale and distribution; read the issuer's own reserve reporting separately.

Where does the data come from?

A public stablecoin dataset queried at the verification date. Anyone can re-run the same query.

Why are algorithmic stablecoins scored lower?

The rubric credits collateralised backing explicitly. Algorithmic designs have the weakest track record and the indicator reflects that.