$USDC

**What Is USD Coin (USDC)?**

USD Coin (USDC) is a cryptocurrency designed to mirror the value of the U.S. dollar. Each USDC token is backed 1:1 by reserved assets, ensuring its price remains closely tied to one U.S. dollar. This stability classifies USDC as a *stablecoin*, a category of digital currencies aimed at minimizing volatility.

Unlike cryptocurrencies such as Bitcoin or Ethereum, which experience significant price swings, stablecoins like USDC derive their steadiness from holdings of traditional assets like cash or bonds. This structure offers users the benefits of blockchain technology while mitigating exposure to market fluctuations.

Continue reading to delve deeper into USDC’s mechanics, applications, and role in the digital economy.

**Key Highlights**

- USDC is collateralized by a mix of cash and short-term U.S. Treasury bonds, held in reserves.

- These reserves are custodied by The Bank of New York Mellon and overseen by BlackRock through the Circle Reserve Fund.

- Cash portions are stored in isolated accounts at regulated U.S. financial institutions to ensure transparency and security.

- USDC is not a government-issued currency; it is developed and maintained by private entities.

This framework ensures USDC combines the reliability of traditional finance with the efficiency of blockchain-based transactions.