Usd coin (usdc)

USD Coin (USDC) is a stablecoin which is pegged 1-to-1 to the value of one U.S. dollar. A USDC is a tokenized U.S. dollar which is 100% backed by U.S dollar assets. Since the value of USDC is designed to remain stable, it is called a stablecoin. In other words, The USD Coin can also be defined as a digital currency that is supported by fiat money.

To achieve stability in prices, Stablecoins are usually backed by reserve assets such as dollars and euros. The price stability of USDC differs drastically compared to the price fluctuations of other virtual currencies like Bitcoin and Ethereum.

It is interesting to note that anyone can view and contribute to USDC code because it is an open-source project. If you start a transaction to purchase one USD Coin in exchange for fiat currency, Then this fiat currency is deposited and stored as one U.S. dollar, and a new USDC is minted. Similarly, if you sell one USD Coin using fiat currency, then the USDC is burned while the fiat money is sent back to your bank account.

USDC’s compatibility with blockchains:

USDC is known to be compatible with several blockchains like Ethereum, Algorand, Solana, Stellar, and TRON. As a price-stable cryptocurrency, USDC can be used as a hedge against volatility. Other usages of USDC include integration of payment systems and applications across blockchains, remittances, global crowdfunding, and exposure to the U.S. dollar. USDC was launched in the year 2018 as an alternative to other USD-backed digital currencies like Tether (USDT) or TrueUSD (TUSD). Circle and COINBASE are considered to be the first commercial issuers of USDC.

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