What Is USDC, and Why Does 8lends Use It?

What Is USDC?

USDC stands for USD Coin. It is a stablecoin, a type of cryptocurrency designed to maintain a fixed price, in this case one US dollar per token. USDC is issued by Circle Internet Financial, a US-regulated money-transmitter business founded in 2013 and headquartered in Boston, Massachusetts.

Each USDC token is backed by reserves held in US Treasury bills and cash equivalents. Circle publishes monthly attestation reports from Grant Thornton LLP, a public accounting firm, confirming that the reserves match the number of USDC tokens in circulation. As of mid-2026, Circle held approximately 34 billion dollars in reserves backing 34 billion USDC tokens.

USDC exists on multiple blockchain networks, including Ethereum, Solana, Avalanche, Polygon and Base. 8lends operates on the Base network, so when you invest through 8lends, you are using USDC on Base specifically.

Why Does 8lends Settle in USDC Rather Than EUR?

8lends is a Web3 extension of Maclear AG, a Swiss lending company that settles its own traditional P2P platform in EUR. The 8lends product, launched around 2023-2024, uses blockchain technology and therefore requires a blockchain-native settlement currency. USDC was chosen for four main reasons.

Price stability for a crypto-native platform

Unlike Bitcoin or Ethereum, whose prices fluctuate by several percentage points daily, USDC is designed to remain at one US dollar. This allows 8lends to quote fixed interest rates in a stable unit of account, similar to how a EUR-settled P2P platform would quote fixed rates in EUR. An investor who deposits 1,000 USDC today expects to see approximately 1,000 US dollars' worth of value tomorrow, before any interest accrues.

USDC is the second-largest stablecoin globally by market capitalisation, after Tether's USDT. Circle's monthly attestations and US regulatory oversight provide a degree of transparency that other stablecoins do not consistently offer.

Global reach and regulatory neutrality

8lends is registered in Switzerland but targets an international audience. Settling in EUR would limit the platform to European banking rails and require 8lends to hold segregated client accounts in a traditional bank, adding operational complexity and cost. USDC is accessible to investors worldwide who hold a cryptocurrency wallet, without regard for national borders or local banking hours.

The US-dollar peg also provides familiarity for international investors. The US dollar is a recognised reserve currency, and many non-European investors think in dollar terms when evaluating yields and portfolio allocations.

Blockchain settlement speed and cost

Traditional P2P platforms that settle in EUR rely on SEPA bank transfers, which can take one to two business days to clear. Withdrawals and deposits on 8lends execute in minutes once the transaction is confirmed on the Base blockchain. This speed is inherent to smart-contract execution and would not be possible with fiat-currency settlement.

Transaction fees on the Base network are typically under one US dollar, often just a few cents. A bank transfer from a P2P platform to a retail investor's EUR account might cost three to five EUR in fees, depending on the bank. For small deposits or withdrawals, blockchain settlement in USDC is materially cheaper.

Smart-contract compatibility

8lends' loan matching, interest accrual and buyback-guarantee logic are programmed into smart contracts audited by CertiK and Cyberscope. Smart contracts cannot natively hold EUR or interact with traditional bank accounts. They require a digital token that exists on the same blockchain. USDC is that token.

Using USDC allows 8lends to automate processes that would otherwise require manual reconciliation, reducing operational risk and overhead.

What USDC Does NOT Protect Against

USDC solves the price-volatility problem typical of cryptocurrencies. It does not solve credit risk, platform risk or liquidity risk. Investors often assume that because USDC is stable, their capital is stable. That assumption is false.

How to Acquire USDC for 8lends

If you decide to invest in 8lends, you will need to acquire USDC and transfer it to a non-custodial wallet compatible with the Base network. The steps below outline the process; our separate guide on how to buy USDC safely covers this in fuller detail.

1. Open an account on a regulated cryptocurrency exchange

   Coinbase, Kraken, Binance and Bitstamp are among the exchanges that allow you to buy USDC with EUR, GBP or USD via bank transfer or card. Choose an exchange licensed in your jurisdiction. Complete the KYC process, which usually requires a government-issued ID and proof of address.

2. Deposit fiat currency and buy USDC

   Transfer EUR or another fiat currency from your bank to the exchange. Once the deposit clears, buy USDC at a one-to-one rate (exchange fees typically range from 0.1 to 1 per cent). Verify that the USDC you are buying is the Circle-issued version, not a different stablecoin with a similar name.

3. Withdraw USDC to a non-custodial wallet on the Base network

   Install a wallet such as MetaMask or Trust Wallet and configure it to support the Base network. Withdraw the USDC from the exchange to your wallet address. Ensure you select Base as the withdrawal network - sending USDC on the wrong network can result in permanent loss of funds.

4. Connect your wallet to 8lends and deposit

   Navigate to the 8lends platform, connect your wallet via WalletConnect or a browser extension, and deposit the USDC into a loan listing. The smart contract will hold the USDC and accrue interest according to the loan's terms.

USDC and Tax Reporting

In most EU jurisdictions, lending income denominated in USDC is taxable in the same way as lending income denominated in EUR. You must convert the USDC value to your local currency at the time you receive interest or principal repayments, using a verifiable exchange rate. Some tax authorities treat USDC as a foreign currency, others as a digital asset. Verify your local rules or consult a licensed tax advisor.

If you realise a gain or loss when converting USDC to EUR, that conversion may also be a taxable event. For example, if you bought USDC at 0.95 EUR and sold it at 1.00 EUR, the five-cent gain per token may be subject to capital-gains tax. Our separate tax guides for Germany, France, Italy, Spain and Portugal cover this in more depth, but those guides provide general information only and are not tax advice.