$USDC (USD Coin) is a stable cryptocurrency whose value is linked to the US dollar, maintaining a parity of 1:1 with the dollar.
For every USDC in circulation, there is an equivalent reserve of US dollars or high liquidity assets denominated in dollars, such as short-term Treasury bonds, held in regulated bank accounts.
Its Issuance and Redemption:
When a new USDC is issued, one dollar is deposited in the reserve. Conversely, when a USDC is redeemed for a dollar, the USDC is removed from circulation and one dollar is released from the reserve.
