USDC

USD Coin, aka USDC, is a fiat-backed stablecoin designed to maintain a value of $1 USD. Stablecoins are usually pegged to a traditional asset like the U.S. dollar or the euro. Cryptocurrencies, like Bitcoin or Ethereum, can change in price significantly. However a stablecoin aims to stay affixed in value. One stablecoin typically equals one unit of the asset it represents. For example, $1 USD equals 1 USDC.

Stablecoins achieve price stability by being backed by reserves, such as cash or short-term government bonds, or by using algorithms to balance supply and demand. This makes them useful for sending money, trading, or participating in DeFi protocols without worrying about large fluctuations in value. Stablecoins are widely used for payments, savings, and as a bridge between traditional finance (TradFi) and decentralized finance (DeFi).

You can use USDC to trade and transact digital currencies, as well as participate in blockchain networks such as Ethereum, Solana, and more. USDC is an ERC-20 (and multi-chain compatible) token that is fully collateralized by cash equivalents and short-term U.S. government bonds. This means that for every 1 USDC issued, there is $1 USD or an equivalent asset held in reserve by Circle, a regulated financial institution. Unlike cryptocurrencies that use mining or staking to validate transactions, USDC is issued by approved entities following strict compliance and transparency guidelines.

USDC is beneficial to crypto networks because it increases accessibility, liquidity, and interoperability and a stable medium of exchange. With USDC, users can transact with a price-stable asset across multiple blockchain ecosystems. You can redeem your USDC for U.S. dollars at any time through approved partners.

Today, USDC is one of the world’s largest and most widely used stablecoins, trusted for payments, trading, DeFi, and more.