What is USDC?

USDC is a stablecoin linked to the US dollar at a 1:1 ratio. This means that the value of one USDC coin is always aimed to be equal to one US dollar. USDC is issued by Circle, a licensed and regulated company in the financial technology sector.

How does USDC work?

To maintain its value stability, Circle claims it holds reserves of US dollars and equivalent assets in regulated accounts in the United States. These reserves are periodically audited by major accounting firms to ensure transparency and reliability.

Key features of USDC:

Stability: As a stablecoin, USDC provides protection from the significant price volatility that other cryptocurrencies like Bitcoin and Ethereum are known for.

Transparency: USDC reserves are subject to regular audits, and Circle is committed to transparency regarding its holdings.

Regulation: Circle is considered one of the most compliant issuers of stablecoins with respect to financial regulations and laws in the United States and the European Union.

Wide Adoption: USDC is widely traded across many cryptocurrency exchanges and is used in a variety of applications, including decentralized finance (DeFi), payments, and cross-border transfers.

Blockchain Compatibility: USDC operates on multiple blockchain networks, including Ethereum and Solana.