EST. 2012 CODEGO GROUP LTD · MALTA BANKING AS A SERVICE LOCAL IBAN · 15 COUNTRIES SEPA · SEPA INSTANT · SWIFT · 21 CCY PCI DSS CERTIFIED 2025 API FIRST · WEBHOOKS 79 COUNTRIES DEPOSITS MULTI-CURRENCY · 12+ FIAT $1.1BN PROCESSED 2025 EST. 2012 CODEGO GROUP LTD · MALTA BANKING AS A SERVICE LOCAL IBAN · 15 COUNTRIES SEPA · SEPA INSTANT · SWIFT · 21 CCY PCI DSS CERTIFIED 2025 API FIRST · WEBHOOKS 79 COUNTRIES DEPOSITS MULTI-CURRENCY · 12+ FIAT $1.1BN PROCESSED 2025
Codego · Glossary · est. 2012 Reference · Vol. XII · Issue 06/2026 ● 7 regions · Malta HQ
G·7

What is a
USDC card program?
Stablecoin spending, explained.

A USDC card program is a card programme where cardholders hold USDC — Circle's regulated, US-dollar-pegged stablecoin — as their spendable balance and pay merchants over the Visa or Mastercard networks. At the point of sale the required amount of USDC is converted to fiat in real time, so the cardholder spends a digital-dollar balance while the merchant is paid in ordinary currency. This guide explains why USDC specifically is used, how settlement and compliance work, and how fintechs and crypto businesses launch one.

01
How a USDC card works

How a USDC card works

The defining feature of a USDC card program is the funding asset. Instead of a fiat current account or a prepaid float, the cardholder's balance is held in USDC, on-chain or in custody, and only converted at the moment of spend. The card itself is an ordinary Visa or Mastercard product, so it works at any merchant that accepts the scheme — there is no special terminal or merchant integration required.

  1. Hold. The cardholder funds the program by depositing USDC, typically over one of its supported chains, into a wallet or custody account linked to the card.
  2. Tap or pay. The cardholder pays at a merchant exactly as with any card — chip, contactless, online, or via Apple Pay and Google Pay.
  3. Real-time conversion. At authorisation the platform quotes the transaction in the merchant's currency, debits the equivalent USDC from the balance and converts it to fiat.
  4. Settle. The merchant and their acquirer are paid in ordinary currency on the normal settlement cycle; the crypto leg stays inside the program.

This is the same model described in the stablecoin card entry, with USDC as the specific base asset. The conversion mechanics are covered in more depth under crypto-to-fiat settlement.

02
Why USDC specifically

Why USDC specifically

USDC is issued by Circle and is one of the two largest dollar stablecoins. Programmes choose it as a base asset for four reasons:

USD-pegged

Each USDC is designed to be redeemable one-to-one for a US dollar, fully backed by cash and short-dated US Treasuries. A stable peg keeps the cardholder's spendable value predictable.

Regulated and transparent

Circle publishes regular reserve attestations and operates under recognised regulatory frameworks, which makes USDC easier for licensed issuers and banks to accept as a funding asset.

Multi-chain

USDC is natively available across Ethereum, Base, Arbitrum, Solana and Polygon, so cardholders can fund from whichever chain has the lowest fees or where they already hold balances.

Deep liquidity

Broad exchange and DeFi liquidity means the real-time USDC-to-fiat conversion at the point of sale can be sourced reliably and at tight spreads.

03
How settlement works

How settlement works

A USDC card program bridges two settlement worlds: the on-chain world where the balance lives, and the card-scheme world where the payment clears. The cardholder experiences a single instant payment, but two flows happen behind it.

On the card side, the transaction follows the standard scheme flow — authorisation, then daily clearing and settlement through Visa or Mastercard, with the issuer debited and the merchant's acquirer credited in fiat. On the crypto side, the program debits the cardholder's USDC at the authorised rate and the program's funding pool covers the fiat obligation to the issuer. Because the conversion happens at authorisation, the merchant and acquirer never touch USDC; they are paid in ordinary currency exactly as for any other card transaction. Programmes typically hold a working fiat float to fund settlement and periodically rebalance it against the USDC collected from cardholders.

04
KYC and compliance

KYC and compliance

Because a USDC card program touches both regulated payments and crypto assets, it sits under overlapping compliance regimes:

  1. KYC and onboarding. Every cardholder completes identity verification, sanctions and PEP screening before a card is issued — the same standard as any regulated card programme.
  2. AML monitoring. Transaction monitoring covers both legs: the on-chain USDC deposits — including source-of-funds and wallet-screening checks — and the downstream card spending.
  3. PCI DSS and SCA. Card data is handled under PCI DSS, and card-not-present payments use 3D Secure 2 for strong customer authentication.
  4. Licensing. Under a BIN sponsorship model the sponsor's licence covers card issuing, while a regulated partner handles USDC custody and conversion. The programme manager runs branding, onboarding and product on top.
05
Benefits for fintechs and crypto businesses

Benefits for fintechs and crypto businesses

A USDC card program lets a crypto-native business give its users a way to spend digital dollars in the real world without first off-ramping to a bank account. For the operator this means:

  1. A spend rail for stablecoin balances. Exchanges, wallets and DeFi apps can turn idle USDC into everyday spending without forcing a manual cash-out.
  2. Familiar UX. Cardholders use a normal Visa or Mastercard at any merchant, in any of the program's supported regions, with no merchant-side changes.
  3. Faster launch. Building on an existing issuer and stablecoin stack removes the need to obtain card-scheme membership or crypto-custody permissions from scratch.
  4. New revenue. Programmes can earn from interchange and FX/conversion spreads, with revenue-share arrangements available from the underlying provider.
06
How to launch a USDC card program

How to launch a USDC card program

Launching a USDC card program from scratch — securing scheme membership, a BIN, crypto custody and the conversion engine — is a multi-year, multi-licence undertaking. Most operators instead build on a white-label stack that already has these pieces certified, and integrate against an API.

Codego operates USDC and stablecoin card programmes across seven regions — the EU, US, UAE, Asia, Africa, LATAM and Oceania — with Apple Pay and Google Pay support and revenue share for partners. The product side is documented under white-label crypto cards and the broader card issuing platform, and the technical integration is described in the Visa crypto card API documentation. A typical launch covers cardholder onboarding and KYC, USDC funding and custody, real-time conversion, card creation and fulfilment, and authorisation and settlement webhooks.

07
Frequently asked questions

Frequently asked questions

Q1.What is a USDC card program?
A USDC card program is a payment-card programme where the cardholder's spendable balance is held in USDC, Circle's US-dollar stablecoin. When the cardholder pays at a Visa or Mastercard merchant, the platform converts the required amount of USDC to fiat in real time at the point of sale and settles the transaction in ordinary currency.
Q2.Why USDC rather than another stablecoin?
USDC is issued by Circle, is fully reserved one-to-one against US dollars and short-dated Treasuries, publishes monthly attestations and is natively available across multiple blockchains — Ethereum, Base, Arbitrum, Solana and Polygon. That combination of a transparent USD peg, regulatory standing and broad multi-chain liquidity makes it the most common base asset for compliant stablecoin card programmes.
Q3.How does settlement work in a USDC card program?
At authorisation the platform quotes the transaction in the merchant's currency, debits the equivalent USDC from the cardholder's balance and converts it to fiat. The programme's funding pool settles the resulting fiat obligation to the issuer and scheme on the normal daily settlement cycle, so the merchant and acquirer never touch the crypto leg. See crypto-to-fiat settlement.
Q4.Do I need a banking or crypto licence to launch one?
Under a BIN-sponsorship model the sponsor's licence covers the regulated card-issuing activity, and a partnered, regulated provider handles the crypto custody and conversion. The programme manager runs onboarding, KYC, branding and product, while the licensed partners carry the issuing and stablecoin-handling permissions.
Q5.What compliance applies to a USDC card program?
Cardholders complete full KYC with sanctions and PEP screening, and the programme runs ongoing AML transaction monitoring across both the on-chain and card legs. Card data is handled under PCI DSS, card-not-present payments use 3D Secure 2, and the stablecoin custody and conversion sit with regulated partners.
Q6.Can a USDC card be added to Apple Pay and Google Pay?
Yes. A modern USDC card program issues virtual cards instantly and supports tokenised wallets, so cardholders can add the card to Apple Pay and Google Pay and spend their USDC balance contactlessly alongside an optional physical card.
08
Related

Related