USD Coin (USDC) is a type of stablecoin—a digital currency pegged to the U.S. dollar—launched in 2018 by Circle and Coinbase through the Centre Consortium. Each USDC token is backed 1:1 by U.S. dollar reserves, held in regulated financial institutions, ensuring its value remains stable. Unlike volatile cryptocurrencies like Bitcoin, USDC offers price stability, making it ideal for payments, remittances, and trading. It operates on multiple blockchains, including Ethereum, Solana, and Polygon, allowing fast, low-cost transfers. USDC is fully transparent, with regular third-party audits verifying its reserves. It plays a key role in the decentralized finance (DeFi) ecosystem, enabling users to earn interest, borrow, or trade without traditional banks. Regarded as one of the most trusted stablecoins, USDC bridges traditional finance with blockchain technology, offering the benefits of digital currency without the volatility. Its stability and compliance make it popular among both retail and institutional users.
