USD Coin (USDC) is a stablecoin that is pegged to the value of the US dollar. For every USDC, an equivalent amount of US dollars is held in reserve at a regulated financial institution. This one-to-one ratio aims to keep the value of USDC stable at around $1.00. It was originally launched by Circle and Coinbase through the Centre Consortium. Although the Centre Consortium is no longer active, both Circle and Coinbase remain the main issuers and supporters of USDC.
The main features of USDC are its stability, full support, transparency, and widespread use. The authenticity of its reserves is verified through regular audits. It exists on various blockchain networks, making it easily usable in various decentralized applications.
USDC is used in a variety of areas, such as stable trading pairs, DeFi applications, payments and remittances, stable stores of value, and as a means of transferring money from fiat currencies to crypto and from crypto to fiat.
Its advantages include stability, transparency, regulated issuers, and interoperability. However, it also has some disadvantages, such as its centralized nature and counterparty risk. As a stablecoin, USDC has established an important connection between cryptocurrencies and traditional fiat currencies and has become an essential part of the digital asset landscape.
