USDC is a stablecoin pegged to the US dollar at a 1:1 ratio. It is issued and regulated by Circle, and its reserves are held in separate accounts at regulated US financial institutions. USDC aims to provide a stable digital currency that can be used for transactions and trading within the cryptocurrency ecosystem. It is characterized by transparency as its reserves are subject to regular audits. It is the second largest stablecoin by market capitalization and aims to provide a stable digital alternative to the US dollar.