USD Coin (USDC) is a digital stablecoin pegged to the value of the US Dollar. Stablecoins are designed to offer the benefits of digital assets while closely tracking state-backed fiat currencies.
They are commonly used by digital asset traders to move money between exchanges. USDC is backed by USD cash and treasuries held in reserve.
USDC is issued as a fiat-backed stablecoin designed to maintain a 1:1 value with the US Dollar. Created on the Ethereum blockchain, USDC is ERC-20 compatible.
In 2018, cryptocurrency exchange Coinbase and fintech firm Circle collaborated to create the Centre Consortium, subsequently producing USDC. As USDC is an open source project, several other blockchains have adopted its use. As of 2021, USDC runs on the Ethereum, Stellar, Algorand, and Solana blockchains.
What is USDC’s place in the ecosystem?
Each unit of USDC in circulation is backed by USD cash and treasuries held in reserve. Monthly attestation reports are provided to the public by accounting firm Grant Thornton that each unit of USDC in circulation is backed by $1.00 of dollar-denominated assets held in reserve.