Welcome to USD1circulating.com

What “circulating supply” means

In plain English, circulating supply is the quantity of tokens that are currently in the hands of the public and available to move on blockchains or within regulated custodians. For USD1 stablecoins, it is the amount of outstanding tokens that customers can transfer or redeem for U.S. dollars (redeem means converting tokens back to dollars with the issuer). This is different from related concepts:

• Total issued (first use definition: the cumulative number of tokens created since inception) counts everything ever minted, regardless of whether some were later destroyed.
• Total supply on chain (first use definition: the current token quantity recorded by the smart contract) equals tokens minted minus tokens burned, typically exposed by functions defined in token standards such as ERC‑20 on Ethereum. ^[10]
• Free float (first use definition: the subset of supply that is realistically available to the market because it is not locked, lost, or tightly controlled by insiders) is a concept borrowed from traditional capital markets. ^[13]
• On exchange balances (first use definition: the amount of tokens held by trading platforms in omnibus wallets for clients) indicate where tokens sit, not whether they are part of public circulation, because exchange holdings are usually customer funds.

For USD1 stablecoins, the operational notion of circulating supply generally equals the on chain total supply across all issuance chains, adjusted for tokens that have been provably destroyed (“burned”) or formally retired, with careful attention to bridged or wrapped representations. Issuers and analytics firms often report similar headline numbers, but their adjustments may differ. ^[11]

Why circulating supply matters

Circulating supply is a core risk and utility signal for USD1 stablecoins users and overseers:

• Redeemability and confidence. For dollar redeemable tokens, the ability to consistently exchange tokens at one to one for U.S. dollars depends on both the quality of reserves and the stability of flows. If outstanding tokens grow faster than operational capacity or reserve quality, redemption frictions can appear during stress. Supervisors highlight these risks explicitly. ^[2][3][4]
• Liquidity in payments and markets. A larger circulating supply can indicate more dollar liquidity available for trading digital assets or for merchant payments, while sudden contractions can signal deleveraging or run dynamics. Research documents “flight to safety” patterns and thresholds where redemptions accelerate if the price deviates from the peg. ^[8]
• Macro linkages. Because many reserves sit in short term U.S. Treasury instruments, stablecoin inflows and outflows can marginally affect money markets, especially at scale, by changing demand for bills and repurchase agreements. ^[9]
• Policy calibration. Authorities use supply measures to scope systemic importance, set proportional requirements, and monitor cross border spillovers. ^[1][2]

How to measure circulating supply for USD1 stablecoins

There is no single universal formula. The sensible approach is transparent, repeatable, and avoids double counting. The walkthrough below is tailored to USD1 stablecoins that are issued on multiple blockchains and may also appear as wrapped assets on bridges.

Step 1. Enumerate canonical contracts across chains

“Canonical” means the contracts directly controlled by the issuer on each network. Start with an authoritative list from the issuer or a well curated registry. On Ethereum and other chains that follow similar token standards, the contract’s reported supply function exposes the current on chain total. Data portals like Etherscan document how supply functions work for ERC‑20 tokens. ^[10][12]

Step 2. Pull on chain totals per contract

For each canonical contract, read the total supply at the latest block. Some explorers and APIs provide historical views to reconstruct supply over time, which is useful for charting mints and burns. Remember that “total supply” on chain is an accounting state; it does not distinguish whether tokens are in user wallets, exchange omnibus accounts, or issuer controlled addresses. ^[12]

Step 3. Identify wrapped or bridged representations

Bridges often lock canonical tokens in a custodian contract and mint a claim token on a destination chain. If you add canonical supply and also count wrapped tokens, you will double count. A clean convention is to measure circulating supply as canonical supply only and track wrapped supply separately as a presentation layer that does not add to the global quantity. When wrapped tokens are burned on the destination chain and originals are released on the source chain, canonical supply is unchanged, so circulation at the system level does not grow or shrink.

Step 4. Reconcile with issuer attestations and policy constraints

Reputable issuers publish independent accountant attestations of reserves and liabilities, hoping to validate that tokens outstanding equal high quality assets held in custody. Supervisors in New York and the European Union have set expectations for redeemability, reserves, and transparency for fiat backed tokens. Compare on chain totals to the most recent liability figure in attestations and regulatory disclosures. Material gaps or unexplained swings deserve scrutiny. ^[4][5][6]

Step 5. Consider a “free float” perspective for special analyses

If you want to focus on the supply that realistically trades, some analysts subtract tokens controlled by the issuer or long inactive addresses. Crypto analytics frameworks adapt free float ideas from traditional finance for this purpose. This is not a replacement for canonical supply; it is a complementary lens for certain questions such as liquidity or market impact. ^[13]

Measurement caveats

• Omnibus custody. Exchange addresses hold customer funds. Large inflows to exchanges do not change circulation; they change concentration.
• Blocked or frozen addresses. When a regulator requires a freeze on a specific address, those tokens still exist on chain. Some dashboards deduct them from “available supply”; others do not. Be explicit about your choice.
• Off chain IOUs. Some platforms ledger customer balances off chain and settle later. Those IOUs are outside on chain supply figures.
• Reissued tokens. When tokens are redeemed and then later re minted, circulating supply can return to the prior level even if the holder base changes.

Mint, burn, and redemption cycle

Three operational actions shape circulation for USD1 stablecoins:

• Mint (first use definition: the issuer creates new tokens on chain when a customer delivers U.S. dollars to the issuer or an authorized partner) increases circulating supply on the minting chain.
• Burn (first use definition: the issuer destroys tokens on chain, usually when a customer redeems for U.S. dollars) reduces circulating supply on the burning chain.
• Redeem (first use definition: the off chain process where a customer submits tokens to the issuer to receive U.S. dollars at one to one) results in a burn on chain once the issuer receives the tokens.

A typical timeline looks like this:

1. Customer wires dollars to the issuer’s bank account after completing compliance checks.
2. Issuer mints tokens to the customer’s address on the requested chain.
3. Customer can transfer tokens, use them for payments, or deposit them at an exchange or custodian.
4. When the customer wants dollars back, they return tokens to the issuer and initiate redemption.
5. Issuer burns the tokens and wires dollars back to the customer’s bank account.

In calm periods, mints and burns roughly balance around usage needs. During stress, redemptions can spike. Research shows that when a token’s market price trades even slightly below one dollar for sustained periods, redemptions can accelerate as arbitrageurs and risk averse holders exit. That behavior mirrors run dynamics in certain cash management products. ^[8]

Multichain issuance, bridges, and wrapping

Many USD1 stablecoins exist on more than one blockchain. Developers and users choose networks for different reasons, such as transaction fees, settlement speed, and application ecosystems. This design introduces three practical issues for measuring circulation:

• Multiple canonical contracts. Each chain has its own supply counter. The global circulating supply equals the sum of canonical supplies across chains.
• Bridged representations. Third party bridges lock canonical tokens and create a claim token elsewhere. Unless you exclude wrapped supply, you will double count.
• Redemption routing. Some issuers allow redemption from one chain even if the customer minted on another. That flexibility helps users but can complicate attribution of burns by chain.

For analytics and reporting, a robust practice is to publish a per chain breakdown alongside the global figure, with a clear statement of how wrapped tokens are treated. That makes it easier for auditors, journalists, and policymakers to reconstruct supply movements without guessing your adjustments.

Exchanges, custody, and the idea of “free float”

A large share of USD1 stablecoins sits in the wallets of centralized platforms that safeguard assets for customers. Those tokens remain part of circulation because customers can withdraw or use them subject to platform rules. Still, concentration matters. If too much supply pools in a few venues, operational outages or policy changes at those venues can temporarily reduce the movement of tokens, even if on chain numbers are unchanged.

To get a sense of “what really trades”, some analysts compute a free float view that deducts tokens that are unlikely to move, like dormant balances or tokens controlled by the issuer. This concept comes from traditional equities and has been adapted to crypto asset data pipelines. Use it as an auxiliary lens, not as a substitute for the canonical circulating figure. ^[13]

Regulatory context across regions

Because USD1 stablecoins interface with money and payments, policymakers have published principles and rules to reduce run risk and support safe innovation. Several references help readers calibrate expectations:

• Global policy baseline. The Financial Stability Board published high level recommendations for supervision of global arrangements. These emphasize governance, redemption rights, reserve quality, and risk management. Circulating supply is a basic input that helps authorities size exposures and track growth. ^[2]
• United States policy discussions. The President’s Working Group report summarizes risks and proposes a prudential framework for payment tokens redeemable at one to one for dollar balances. It stresses that holders need clear, enforceable redemption rights and that reserves must be high quality and liquid. ^[3]
• New York’s supervisory guidance. The New York Department of Financial Services issued guidance on dollar backed tokens under its oversight. It highlights three pillars: strict reserves, confidence in redeemability, and transparency through regular attestations. ^[4]
• European Union implementation. The Markets in Crypto‑assets Regulation splits tokens into “asset referenced” and “electronic money” categories, with the latter most relevant to fiat backed tokens redeemable in a single currency. The European Banking Authority and markets authorities have issued statements and technical standards, with key parts applicable from 30 June 2024. ^[5][6]
• Anti money laundering obligations. The Financial Action Task Force sets a risk based framework for virtual assets and service providers, including travel rule data exchange and controls that affect how customers mint and redeem. ^[10]

Across these regimes, a simple theme repeats: if a token promises one to one dollar redeemability, then liabilities outstanding must be matched by high quality, liquid assets, and users must be able to redeem within stated timeframes. Circulating supply anchors those liability measurements.

Reserves, yield, and money market linkages

Many USD1 stablecoins hold reserves in cash, bank deposits, short term Treasury bills, and repurchase agreements. Over the past few years, regulatory reforms tightened liquidity expectations for money market funds, a closely related corner of cash management. Although USD1 stablecoins are not funds, understanding these reforms helps readers reason about reserve quality and stress behavior. The U.S. Securities and Exchange Commission increased minimum daily and weekly liquidity thresholds for certain funds and removed gates that previously allowed temporary suspension of redemptions, while introducing other tools to handle large outflows. ^[7]

Why does this matter for circulation? When stablecoin reserves skew toward very short term government instruments, large net minting can increase demand for those instruments at the margin, while large net redemptions can reduce demand. Empirical work finds that strong inflows into dollar redeemable stablecoins may slightly lower short term Treasury yields over the following days, though effects are modest and may reverse during outflows. ^[9]

Issuers earn interest on reserves; holders of USD1 stablecoins typically do not. That structural detail can influence issuance trends when interest rates change. Higher rates grow issuer income, potentially funding more transparency and resilience, while also tempting market entrants. Lower rates compress income and may reduce incentives to expand. These forces shape the medium term path of circulating supply.

Data sources and verification checklist

If you need to verify the circulating supply of USD1 stablecoins today, adopt a repeatable checklist:

Source 1. Chain explorers and APIs

Use block explorers for each chain to read total supply for the canonical contract. On Ethereum, ERC‑20 supply functions are documented publicly, and APIs expose both current and historical totals by block height. ^[10][12]

Source 2. Issuer transparency pages and attestations

Compare on chain totals to the liabilities number in the most recent attestation or audit style report. Check the date and time of both sources so you do not mismatch a stale attestation with a current chain snapshot. Look for consistency with policy requirements in the jurisdictions most relevant to your use case. ^[4][5][6]

Source 3. Independent analytics methods

For research questions that care about market availability rather than pure liabilities, consider a free float style adjustment. Document your assumptions, such as which addresses are considered issuer controlled, and how you treat long inactive wallets. Public methodology documents explain the rationale and typical exclusions. ^[13]

Source 4. Policy benchmarks and risk indicators

Read global policy recommendations and national guidance to understand what supervisors expect around redeemability, reserve quality, governance, and disclosure. These expectations inform how analysts interpret short term swings in circulating supply during stress. ^{[1][2][3][4][5][6]}

Scenarios that change circulating supply

Circulation is not static. The following scenarios commonly move the number up or down:

• Seasonal demand from exchanges. When trading activity rises, platforms request more tokens to meet client settlement needs. Issuers mint, circulation rises.
• Merchant adoption spurts. New payment integrations or cross border corridors can increase transactional demand, leading to net mints.
• Market stress and flight to safety. If risk appetite falls, holders may redeem en masse for dollars, shrinking circulation. Research documents thresholds where a small, sustained price deviation prompts outsized redemptions. ^[8]
• Policy changes at a major venue. If a large platform adjusts listing or custody policies, customers may move balances or redeem, shifting where tokens sit or reducing supply if redemptions dominate.
• Bridge migrations. Moving from third party bridges to native, issuer supported bridges can change how wrapped representations are measured without changing canonical supply.

Frequently asked questions

Is circulating supply the same as market capitalization for USD1 stablecoins

No. Market capitalization is a price multiplied by circulating supply. Because USD1 stablecoins target one dollar, some dashboards equate circulation with market capitalization in dollars. That shortcut ignores any temporary price deviations and the fact that off chain pricing may vary by venue. Treat them as related but distinct.

Can you read circulating supply directly from the blockchain

You can read the total supply the token contract reports, but that is not always identical to how a data vendor defines “circulating”. For example, some vendors subtract frozen balances; others do not. On Ethereum, explorers and APIs document how to query supply at a specific block height, which is useful for reconciling mints and burns. ^[12]

Are tokens on exchanges part of circulation

Yes, generally. Exchange wallets usually hold customer funds. Those tokens remain part of the public supply even if concentrated. Concentration creates different risks, such as operational outages or policy frictions, but it does not, by itself, remove tokens from circulation.

What does policy say about matching supply with reserves

Global and national guidance emphasize that liabilities outstanding should be matched by high quality, liquid assets and that redemption rights must be clear and enforceable. Supervisors in New York, for example, require one to one backing and regular attestations. The European rules for electronic money tokens set authorization, governance, and reporting expectations. ^[2][4][5][6]

How do interest rates affect circulating supply

When short term rates rise, reserve assets yield more. Issuer income tends to grow, which can support broader distribution and more robust operations. When rates fall, incentives to expand may weaken. At a macro level, research finds modest links between stablecoin flows and Treasury yields, suggesting a feedback loop between money markets and circulation. ^[9]

How do anti money laundering rules show up in supply numbers

Customer due diligence and transaction monitoring can affect how quickly new holders can mint or redeem, especially across borders. The global standard setter outlines controls that virtual asset service providers should implement, which can indirectly influence the pace at which supply expands or contracts. ^[10]

Glossary

• Attestation: a report by an independent accountant who checks whether specific assertions, such as reserves equaling liabilities, appear accurate at a point in time.
• Audit: a structured examination of financial statements against an accounting framework. Not all stablecoin issuers publish full audits; many publish attestations.
• Burn: the on chain destruction of tokens, usually tied to redemption for U.S. dollars.
• Canonical contract: the official token contract for a given chain, controlled by the issuer.
• Circulating supply: the number of tokens available to the public for transfer or redemption at a point in time.
• Free float: a measure of supply intended to reflect tokens that realistically trade, excluding tightly held or inactive balances.
• Mint: the creation of new tokens on chain, usually when the issuer receives U.S. dollars.
• Redeem: the process of exchanging tokens for U.S. dollars with the issuer.
• Stablecoin: a digital token designed to maintain a stable value relative to a reference, such as U.S. dollars; here we focus on tokens redeemable one to one.
• Wrapped token: a representation of a token on another chain, typically backed by the original locked in a bridge contract.

Closing note

Circulating supply is not just a number; it is a lens on how USD1 stablecoins work in practice. A careful reader pairs on chain measurements with transparent disclosures and policy context. That combination supports better decisions for treasurers, developers, risk managers, and public authorities alike.

Sources

[1] Bank for International Settlements, “Stablecoin growth – policy challenges and approaches.” https://www.bis.org/publ/bisbull108.htm ^[1]

[2] Financial Stability Board, “High‑level recommendations for the regulation, supervision and oversight of global stablecoin arrangements” (Final report, 2023). https://www.fsb.org/uploads/P170723-3.pdf ^[2]

[3] U.S. President’s Working Group on Financial Markets, “Report on Stablecoins” (2021). https://home.treasury.gov/system/files/136/StableCoinReport_Nov1_508.pdf ^[3]

[4] New York State Department of Financial Services, “Guidance on the Issuance of U.S. Dollar‑Backed Stablecoins” (2022). https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220608_issuance_stablecoins ^[4]

[5] European Banking Authority, “Asset‑referenced and e‑money tokens (MiCA)” (landing page for rules and standards). https://www.eba.europa.eu/regulation-and-policy/asset-referenced-and-e-money-tokens-mica ^[5]

[6] European Securities and Markets Authority, “Public Statement on the provision of certain crypto‑asset services related to stablecoins” (2025), noting applicability from 30 June 2024. https://www.esma.europa.eu/sites/default/files/2025-01/ESMA75-223375936-6099_Statement_on_stablecoins.pdf ^[6]

[7] U.S. Securities and Exchange Commission, “SEC Adopts Money Market Fund Reforms” (Press Release 2023‑129). https://www.sec.gov/newsroom/press-releases/2023-129 ^[7]

[8] Federal Reserve Bank of Boston, “Runs and Flights to Safety: Are Stablecoins the New Money Market Funds” (Working Paper, 2023). https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2023/wp2311.pdf ^[8]

[9] Bank for International Settlements, “Stablecoins and safe asset prices” (Working Paper 1270, 2025). https://www.bis.org/publ/work1270.pdf ^[9]

[10] Financial Action Task Force, “Updated Guidance for a Risk‑Based Approach to Virtual Assets and VASPs” (2021). https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Guidance-rba-virtual-assets-2021.html ^[10]

[11] Etherscan Information Center, “What is an ERC‑20 token” (explainer). https://info.etherscan.com/what-is-erc20-token/ ^[10]

[12] Etherscan API Docs, “Tokens endpoints” (supply by contract and by block). https://docs.etherscan.io/api-endpoints/tokens ^[12]

[13] Coin Metrics Product Docs, “Free Float Supply” (methodology overview). https://gitbook-docs.coinmetrics.io/network-data/network-data-overview/supply/free-float-supply ^[13]