$USDC
How Does USD Coin Work?
USDC is backed by real assets, and is sometimes referred to as a fiat-collateralized stablecoin. As the name suggests, fiat-collateralized currencies are backed by a sovereign currency, such as the U.S. dollar or the British pound.
To maintain USDC’s stable value equal to $1, USDC is backed by cash and short-term U.S. government bonds as collateral. For every USDC token in circulation, $1 is held in collateral.
When crypto investors buy USD Coin, they expect one USDC to always be equal in value to one dollar. So why own USDC? The most common use case is to purchase USDC, store it on an exchange or in a crypto wallet, and then use it to fund purchases of other cryptocurrencies.