USDC (USD Coin) is a stablecoin pegged 1:1 to the US dollar, aiming to provide a stable digital currency for various applications within the cryptocurrency ecosystem. Launched by Circle, it's designed to maintain a consistent value, unlike more volatile cryptocurrencies. Each USDC is backed by US dollar assets held in regulated financial institutions, ensuring transparency through regular attestations.

USDC facilitates fast and low-cost global transactions, making it useful for remittances and international business. Its stability makes it a popular choice in DeFi for lending, borrowing, and trading. Businesses can leverage USDC for efficient payments and managing price volatility.

However, USDC isn't without risks. It can experience "depegging," where its value deviates from $1. Regulatory changes and potential vulnerabilities in smart contracts also pose risks, especially in DeFi applications. While centralized, USDC emphasizes regulatory compliance and transparency, distinguishing it from some other stablecoins.