USDC doesn’t really support your “trustless” point. It isn’t trustless; it’s basically traditional financial infrastructure with a blockchain strapped on.

You still have to trust Circle to actually hold the reserves, honor redemptions, and manage them properly. You need audits and regulation to make that credible. In other words, the thing providing stability is precisely the centralized trust crypto was supposed to eliminate. A stablecoin can’t replace fiat while remaining pegged to fiat. And what do we get in return? Mostly a harder-to-tamper-with ledger.

Stablecoins don’t have a spotless record either. The CFTC found Tether made misleading claims about its reserves, and USDC itself briefly fell to about $0.87 when SVB failed because $3.3B of its reserves were stuck there.