#BinancePizza

USD Coin (USDC): A Stablecoin Backed by the U.S. Dollar**

**USD Coin (USDC)** is a digital stablecoin that is pegged to the U.S. dollar on a 1:1 basis. This means that for every 1 USDC issued, there is an equivalent \$1 held in reserve. USDC is designed to offer price stability, making it useful for trading, payments, and decentralized finance (DeFi) applications.

### Key Features:

* **Stability**: USDC is pegged to the U.S. dollar, making it less volatile than other cryptocurrencies like Bitcoin or Ethereum.

* **Transparency**: Issued by **Circle** and supported by **Coinbase**, USDC undergoes regular audits to verify that reserves match the supply in circulation.

* **Multi-Blockchain Support**: Originally launched as an ERC-20 token on Ethereum, USDC is now available on multiple blockchains including Solana, Avalanche, Stellar, and others.

### How USDC Works:

1. A user sends USD to a Circle partner bank.

2. An equivalent amount of USDC is minted and sent to the user.

3. When the user wants to redeem USDC, the tokens are burned, and USD is returned to their account.

### Common Uses:

* **Trading**: Used as a stable base currency on crypto exchanges.

* **Payments**: Ideal for fast, low-cost international transactions.

* **DeFi**: Popular in lending, staking, and yield farming platforms.

* **Savings**: Some platforms offer interest on USDC holdings.