USD Coin (USDC) is a type of stablecoin, which means it’s a cryptocurrency designed to maintain a stable value — in this case, pegged 1:1 to the U.S. dollar.
Here are the key facts:
Issuer: USDC is managed by Circle and was originally developed in collaboration with Coinbase through a consortium called Centre.
Backing: Each USDC token is backed by actual U.S. dollars or equivalent assets (like short-term U.S. Treasuries), held in reserve accounts.
Blockchain Support: USDC is available on multiple blockchains, including Ethereum, Solana, Avalanche, Algorand, and Polygon, making it widely usable in decentralized finance (DeFi).
Use Cases: It's used for trading, lending, payments, and remittances, as well as hedging against crypto volatility.
Because it’s fully backed and regularly audited, USDC is considered one of the more transparent and trustworthy stablecoins. However, it’s still subject to regulatory scrutiny and risks related to the banking partners holding its reserves.
