$USDC

USDC (Digital US Dollar) **

**What is it?**

It is a **stablecoin** backed by the US dollar at a 1:1 ratio, issued by platforms like "Circle" and "Coinbase". Each USDC unit has cash reserves and short-term US securities.

**How does it work?**

- Issued when dollars are deposited in partner banking institutions.

- Destroyed when dollars are withdrawn (converted to traditional currency).

- Subject to quarterly financial audits to ensure reserve transparency.

**Main uses:**

1. **Instant international transfers** at minimal cost.

2. **Stabilizing asset value** on cryptocurrency exchanges (to avoid Bitcoin volatility).

3. **Decentralized trading** (DeFi) for loans, borrowing, and savings.

*Key risks:**

- It experienced a temporary drop below the $1 price during the US banking crisis (2023) due to 8% of its reserves being held in "Silicon Valley Bank".