$USDC
USD Coin (USDC) is a type of cryptocurrency known as a stablecoin. Here's a breakdown:
* Stablecoin:
* Stablecoins are cryptocurrencies designed to maintain a stable value, typically by pegging their value to a traditional asset like the U.S. dollar.
* USDC's Peg:
* USDC is pegged to the U.S. dollar, meaning that one USDC is intended to be worth one U.S. dollar.
* Backing:
* To maintain this peg, USDC is backed by reserves of U.S. dollar assets, such as cash and short-term U.S. Treasury bonds, held in regulated financial institutions.
* Purpose:
* USDC aims to provide a stable and reliable digital currency that can be used for various purposes, including:
* Trading on cryptocurrency exchanges.
* Making online payments.
* Transferring funds across borders.
* Providing a less volatile asset within the cryptocurrency market.
In essence, USDC seeks to offer the benefits of cryptocurrencies while minimizing the price volatility that is often associated with them.