USDC (USD Coin) is a digital currency designed to maintain a stable value, pegged 1:1 to the US dollar. It's a "stablecoin" issued by Circle, a regulated financial technology company, in collaboration with Coinbase.
The key to its stability is that for every USDC in circulation, there's one US dollar or a highly liquid cash equivalent held in reserve by regulated US financial institutions. These reserves are regularly attested by a Big Four accounting firm, providing transparency.
USDC is primarily used for fast, low-cost global transactions, hedging against crypto market volatility, and facilitating decentralized finance (DeFi) activities like lending and borrowing. It operates on multiple blockchains, making it highly interoperable within the crypto ecosystem.
