$USDC is a stablecoin, which means it is a cryptocurrency whose value is tied to a stable fiat currency, in this case, the US dollar (USD). The main objective of USDC is to provide a digital medium of exchange with a predictable and stable value, unlike the volatility of other cryptocurrencies like Bitcoin or Ethereum.

How does it work?

USDC is issued by Circle, a financial technology company, through its regulated affiliates. For every USDC token in circulation, Circle claims to hold an equivalent value in reserves of US dollars or dollar-denominated assets, held in regulated financial institutions in the US. These reserves undergo monthly attestations by independent accounting firms, ensuring transparency and compliance of the backing.

USDC primarily operates as an ERC-20 token on the Ethereum blockchain, but it is also available on various other blockchains such as Solana, Polygon, Base, and others. This allows its use in various decentralized finance (DeFi) ecosystems and other applications.