USDC (USD Coin) is a digital dollar backed 1:1 by U.S. dollar reserves or equivalent assets.
It is issued by Centre Consortium, founded by Circle and Coinbase.
Each USDC token is supposed to be redeemable for $1 USD, making it relatively stable compared to volatile cryptocurrencies like Bitcoin or Ethereum.
🔹 Key Features
Feature Description
Stable Value Pegged 1:1 to USD to reduce volatility.
Transparency Reserves are regularly audited by independent firms.
Blockchain Use Runs on multiple blockchains: Ethereum (ERC-20), Solana, Avalanche, etc.
Use Cases Trading, remittances, DeFi, payments, and as a hedge against crypto volatility.
🔹 How USDC Maintains its Peg
Issuers (like Circle) hold reserves (cash or short-term U.S. Treasuries) equivalent to the USDC in circulation.
These reserves are attested regularly by accounting firms to ensure transparency.
