$USDC is a stablecoin backed by the U.S. dollar, maintained at a 1:1 ratio, meaning that for every USDC in circulation, there is one U.S. dollar (or an asset of equivalent security and liquidity) held in reserve. This direct parity ensures that the value of USDC remains stable, making it a reliable option for those looking to avoid the volatility typical of other cryptocurrencies such as Bitcoin or Ethereum.

In the world of decentralized finance (DeFi), USDC plays a crucial role as a medium of exchange, unit of account, and store of value. It enables fast, global, and low-cost transfers, overcoming the limitations of traditional banking systems, such as long settlement times, high fees, and geographical barriers.