USD Coin (#USDC ) — a centralized cryptocurrency, the value of which is fixed relative to the US dollar (stablecoin). USDC is managed by a consortium founded by Circle. The consortium includes members from the cryptocurrency service Coinbase and the mining company Bitmain, investors in Circle. USDC is a form of private money and is not a central bank digital currency. According to Circle, each 'coin' of USDC is backed by a dollar held in reserve at Silicon Valley Bank, or other 'approved investments.' In June 2021, the wording on Circle's website changed from 'backed by US dollars' to 'backed by fully reserved assets.'
The conversion of US dollars to USDC occurs in three stages:
The user sends US dollars to the issuer's bank account.
The issuer uses a smart contract to create an equivalent amount of USDC.
USDC is sent to the user, and the received US dollars are held in reserve.