As blockchain technology continues advancing into mainstream finance, stablecoins have emerged as a critical bridge helping individuals and institutions access crypto‘s potential.
Pegged 1:1 with fiat currencies like the US dollar, stablecoins aim to bring real-world price stability to the notoriously volatile crypto markets. This allows practical, everyday transactions on the blockchain without worrying about wild price swings.
One such popular stablecoin is USD Coin (USDC), collaboratively founded in 2018 between cryptocurrency exchange Coinbase and blockchain-based payments company Circle. It has rapidly risen to become the second largest stablecoin with a market cap of over $52 billion as of January 2022 [1].
USD Coin Circulating Supply:
September 2020 – 2.4 billion USDC
January 2022 – 52.9 billion USDC
This massive 2000% supply growth in under 2 years signals intense and increasing demand for USDC across many crypto platforms and users.
And where there is growth in stablecoin usage, there must be compatible digital wallets. That‘s where MetaMask comes in – as one of the most popular client-side Ethereum wallets according to recent surveys [2].
In this step-by-step guide, you‘ll learn:
- What is USDC? Who created it and why?
- What is MetaMask? How does it work?
- How to add USDC tokens to your MetaMask Wallet
- Use cases for USDC on MetaMask
- Advantages over keeping coins on an exchange
Let‘s get started!
What is USDC? Background on the Dollar-Pegged Crypto Asset
USD Coin (USDC) is a stablecoin cryptocurrency whose value tracks directly to a real-world asset outside of crypto markets – in USDC‘s case, the US dollar.
This means no matter the volatility seen by Bitcoin, Ethereum, or other cryptos – 1 USDC is always equal to $1 USD.
Maintaining this 1:1 dollar-peg allows USDC to function as a digital version of the greenback. Bringing fiat‘s price stability onto the blockchain provides a reliable, predictable medium of exchange for blockchain transactions.
For individuals and institutions hesitant to expose themselves to crypto‘s intense ups and downs, stablecoins like USDC provide a familiar entry point into Bitcoin and decentralized finance. Payments, trading, lending that can leverage blockchain‘s speed and global accessibility while avoiding its volatility.
USDC launched in 2018 through a collaboration between:
- Circle: Founded in 2013 by Jeremy Allaire and Sean Neville, Boston-based Circle provides online financial services technology and issued the early stablecoin USDCoin before USDC. It has raised $246 million in venture funding from investors including Fidelity, Blockchain Capital, and Digital Currency Group [Crunchbase].
- Coinbase: Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase operates one of the largest regulated cryptocurrency exchanges, with 73 million verified users and over $327 billion assets traded [4].
So by combining Circle‘s payments network with Coinbase‘s extensive user reach, USDC was positioned for fast success.
And the numbers speak to that traction:
- Over $52 billion USDC currently in circulation [1]
- Supported on 5 different blockchains – Ethereum, Algorand, Solana, Stellar and Tron
- Weekly transaction counts exceeding 15 million [Circle research]
- Adopted by major exchanges like Coinbase, Binance, FTX as well as DeFi protocols
As blockchain usage continues accelerating, expect the convenience and real-world utility offered by USDC integration across wallets, decentralized exchanges and protocols to deepen further.
What is MetaMask? A Popular Crypto Wallet for Ethereum & Dapps
First, wallets represent a vital piece of crypto‘s infrastructure – without somewhere secure to store coins, participation is difficult. Keys to adoption are safe, easy to use wallets.
MetaMask encrypts and stores your wallet keys locally so that no one but you has access to your funds (hence "non-custodial"). This eliminates security issues inherent to keeping large amounts on exchanges long-term.
Originally built in 2016 as the key wallet option for Ethereum dapps, MetaMask has grown to over 21 million monthly active users making it the market‘s most popular client-side crypto wallet [2].
MetaMask lets users not only…
- Securely store hundreds of different crypto assets
- But also access decentralized applications and financial services built on Ethereum and other blockchain networks
It comes with formats supporting modern browser extensions as well as mobile apps:
- Browser add-ons for Chrome, Firefox, Microsoft Edge
- iOS and Android mobile apps
This multi-platform versatility combined with a smooth UX has fueled MetaMask‘s rise as a vital wallet option as crypto goes increasingly mainstream.
By default, MetaMask supports popular cryptos like Bitcoin, Ether and stablecoins such as DAI, Frax – but USD Coin (USDC) needs adding.
So next let‘s walk through how to import USDC token support.
Step 1: Copy USDC‘s Contract Address
In order for MetaMask to identify and add a token, you first need to provide its contract address – serving as a unique identifier on the Ethereum blockchain.
To find USDC‘s address:
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Go to the USD Coin page on CoinMarketCap
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Scroll down and under "Contracts", click the copy button icon next to the contract address:
0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
- Paste & save this address into a notepad as we‘ll need it shortly in MetaMask.
Step 2: Connect MetaMask to Ethereum Mainnet
Because USDC runs on the Ethereum blockchain as an ERC-20 token, we need to make sure MetaMask connects specifically to Ethereum‘s mainnet.
The mainnet represents the primary production blockchain network where live transactions occur (as opposed to testnets for development).
To check your network:
-
Click the orange MetaMask icon to open the extension
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At the top, locate the Network dropdown menu next to your account name
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By default, this should show "Ethereum Mainnet". If not:
- Click the Network menu
- Select Ethereum Mainnet from the list
Connecting to mainnet ensures MetaMask can automatically populate USDC‘s symbol and decimal details later when adding the custom token.
If you forget this vital step, the details will NOT auto-populate.
Let‘s continue.
Step 3: Unlock your MetaMask Wallet
Before we can add new tokens, we need to first unlock the wallet for transactions:
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Ensure MetaMask shows as "Connected" in the upper right.
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Click the orange MetaMask icon to open your wallet panel.
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Enter your password to unlock it.
- If new, follow the prompts to securely create a password. Don‘t forget or share this!
- Your wallet will now show as unlocked and ready for transactions.
Step 4: Import USDC Token
With prerequisites done, we‘re finally ready to add USD Coin.
From your MetaMask wallet, click:
-
Click the circle icon in MetaMask to access your wallet options
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Select "Import Tokens" in the dropdown menu
This opens the Import Tokens page.
As we‘re manually adding USDC, make sure to:
-
Switch from the default "Token Contract Address" tab
-
Paste the USDC contract address you copied earlier into the address field:
0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
Once pasted, because you‘re correctly on the Ethereum Mainnet, the:
- "Token Symbol" field auto-populates to USDC
- As does "Decimals of Precision" to 6
-
Double check token symbol, decimals.
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Finally, click "Add Custom Token"
- If the details did not auto-populate, you likely disconnected from the Ethereum Mainnet earlier. Redo Step 2 above.
Awesome! If all goes well, USDC now shows under your list of token assets!
Use Cases: Send, Receive, Trade USDC on MetaMask
Congratulations on adding USDC to your MetaMask wallet. Now what can you do with your dollar-backed stablecoin?
Here are some of the popular things made possible:
Receiving USDC
To receive USDC from an exchange, friend or other party:
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Copy your MetaMask wallet‘s unique address
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Share this address with the sender
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Once confirmed, the USDC balance will directly show in your Wallet!
Sending USDC
To send USDC to another address:
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Select USDC from your MetaMask Assets list
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Click "Send". This opens the Send screen
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Paste the receiving address into the Address field
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Enter the USDC amount to send
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Set Gas Fees (network transaction fees)
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Confirm details and process the transaction
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The receiver will receive your USDC after transaction confirmation
Trading & Interacting with Dapps
Thanks to MetaMask‘s broad compatibility and features, having USDC added allows you to easily:
- Trade USDC directly on popular decentralized exchanges like Uniswap and Pancakeswap
- Interact seamlessly with hundreds of decentralized apps running on Ethereum and other blockchains
- All directly within the browser without switching screens or accounts!
Advantages Over Keeping Coins on Exchanges
For beginners, centralized exchanges like Coinbase or Binance provide the easiest initial access point to buy and trade cryptocurrencies…
But there are security and usage risks long term:
Exchange Risks
- History of billion dollar exchange hacks losing customer funds
- Transaction limits or withdrawal freezes can be imposed
- Ultimately don‘t control your private keys or full access
MetaMask Benefits
- You fully own private keys so no sensitive data stored with 3rd parties
- No KYC needed further reducing attack profile
- Allows superior DeFi connectivity and unrestricted access to your coins
This makes MetaMask closely integrated with trusted stablecoins like USDC a powerful combination for managing your crypto wealth safely and efficiently.
Recent Major Crypto Exchange Hacks
| Year | Exchange | Amount Stolen |
|---|---|---|
| 2022 | Crypto.com | $33 million in ETH |
| 2021 | Bitmart | $200 million in crypto assets |
| 2018 | Coincheck | $534 million worth of NEM |
| 2016 | Bitfinex | $77 million in BTC |
Losses translated into USD at time of hack [Sources: Coindesk, Security.org, Cryptonews]
Conclusion
Adding USD Coin stablecoin support to your MetaMask wallet opens up a whole new world of blockchain opportunities – from DeFi platforms to practical daily transactions.
As Web3 and crypto continues accelerating into the financial mainstream, expect reliable dollar-pegged cryptos like USDC to serve an essential role as a gateway to this technology for individuals and institutions.
And non-custodial wallets like MetaMask will continue providing superior security, utility and access to decentralized services that centralized exchanges cannot match.
In this guide you learned step-by-step how to import USDC into MetaMask, understand key benefits of stablecoin and self-hosted wallet management as part of safely navigating the exciting new frontier of crypto finance!
- CoinMarketCap – https://coinmarketcap.com/currencies/usd-coin/
- Crypto.com Research – https://crypto.com/defi/research/
- Circle – https://www.circle.com
- Crunchbase – https://www.crunchbase.com/organization/coinbase
- Juggernaut – https://twitter.com/JuggernautBeats/status/1556444188170776576/
- Blockchain News – https://www.theblockchainsocialist.com/blockchain-technology-web-3-0-metaverse-crypto-bitcoin-ethereum-nfts-dao-defi-platform/
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