$USDC

USD Coin (USDC) is a digital currency that is fully backed by U.S. dollar assets. USDC is a tokenized U.S. dollar, with the value of one USDC coin pegged as close to the value of one U.S. dollar as it can get. The value of USDC is designed to remain stable, making USDC a stablecoin.

Understanding USD Coin (USDC)

USD Coin (USDC) is a stablecoin, a cryptocurrency backed by U.S. dollars or dollar-denominated assets like U.S. Treasury securities. USDC's cash assets are held in segregated accounts with regulated U.S. financial institutions and its reserve portfolio is held at the Bank of New York Mellon.

Circle, the company behind USDC, maintains the 1:1 peg with the U.S. dollar by holding an amount of cash or cash equivalents equal to the amount of USDC circulation. So, if you initiate a transaction to buy one USD Coin using $1, then that dollar is deposited and stored, and you hold 1 USDC. If you sell 1 USDC in exchange for $1, the USDC is burned (sent to a wallet with no access keys) when the fiat money is transferred back to your bank account.