$USDC USDC
offers key advantages, but also faces significant risks.
### **Advantages:**
1. **Regulated & Transparent**
- Jointly issued by Circle and Coinbase in accordance with strict US regulations.
- Reserves are 100% backed by cash and US government bonds, with regular audits.
2. **Technical Flexibility**
- Built on Ethereum and other blockchains, supports smart contracts.
- High cross-chain compatibility, enabling use in DeFi, cross-border transactions, and much more.
3. **High Liquidity**