$USDC

USD Coin (USDC) is a digital currency that is fully backed by U.S. dollar assets. USDC is a tokenized U.S. dollar, with the value of one USDC coin pegged as close to the value of one U.S. dollar as it can get. The value of USDC is designed to remain stable, making USDC a stablecoin.

Stablecoins are commonly backed by reserve assets like dollars or euros to achieve price stability. The price stability of USDC contrasts sharply with the notorious price fluctuations of other cryptocurrencies like Bitcoin and Ethereum.

Keep reading to understand more about USDC, including how it works and the various use cases for the digital currency.

Key Takeaways

USD Coin (USDC) is a stablecoin that is backed by U.S. dollars and U.S. Treasury instruments.

The USDC Circle Reserve Fund is held at The Bank of New York Mellon and is managed by BlackRock.

Cash is held in segregated accounts with U.S.-regulated financial institutions.

The U.S. government does not issue USDC.

Understanding USD Coin (USDC)

USD Coin (USDC) is a stablecoin, a cryptocurrency backed by U.S. dollars or dollar-denominated assets like U.S. Treasury securities. USDC's cash assets are held in segregated accounts with regulated U.S. financial institutions and its reserve portfolio is held at the Bank of New York Mellon.