$USDC

According to Circle, each USDC "coin" is backed by a dollar held in reserve at Silicon Valley Bank, or by other "approved investments." In June 2021, the wording on Circle's website changed from "backed by U.S. dollars" to "fully backed by reserve assets."

The conversion of U.S. dollars to USDC occurs in three stages:

The user sends U.S. dollars to the coin issuer's bank account.

The issuer uses a smart contract to create an equivalent amount of USDC.

USDC is sent to the user, and the received U.S. dollars are held in reserve.

The redemption of USDC for U.S. dollars occurs in the reverse order.

USDC reserves are regularly attested (but not audited) by Grant Thornton LLP. Monthly attestations can be found on the Center Consortium website.