USD Coin (USDC) is a type of stablecoin pegged to the US dollar, offering stability and reliability within the cryptocurrency ecosystem. Launched by the Centre Consortium in 2018, USDC is backed by reserves of US dollars held in regulated financial institutions on a 1:1 basis. This backing ensures that each USDC token maintains a value equivalent to one US dollar, providing a secure and transparent means of transacting in digital assets. USDC is widely used for trading on cryptocurrency exchanges, facilitating cross-border payments, and accessing decentralized finance (DeFi) applications. Its transparency, regulatory compliance, and stability make USDC a popular choice for individuals and businesses seeking to hedge against cryptocurrency volatility while retaining the benefits of blockchain technology.
