USDC (USD Coin) is a cryptocurrency called a stablecoin that is designed to maintain a value of 1 USDC ≈ 1 US dollar. It is issued by the company Circle (originally via the Centre consortium with Circle and Coinbase) and is fully backed by reserves of cash and short‑term U.S. Treasuries held at regulated financial institutions.wikipedia+4
Basic definition
- USDC is a tokenized digital version of the U.S. dollar that runs on public blockchains like Ethereum, Solana, and others.kraken+1
- Each token is intended to be redeemable 1:1 for one actual U.S. dollar and is backed by cash and cash‑equivalent assets, with regular reserve attestations for transparency.circle+2
How USDC works
- When users deposit U.S. dollars with the issuer (Circle or partners), new USDC is minted and the equivalent amount of dollars is held in reserve; when users redeem, USDC is burned and dollars are returned.usdc+1
- Because of this reserve mechanism, USDC’s price generally stays very close to 1 dollar, unlike volatile cryptocurrencies such as Bitcoin or Ether.osl+1
Who issues and governs it
- USDC was launched in 2018 by Centre, a joint venture originally formed by Circle and Coinbase to create a compliant, transparent dollar stablecoin.gemini+1
- Circle, a U.S.-regulated financial services firm, now issues USDC and publishes regular reports on reserves, working with licensed banks and custodians.usdc+1
Main use cases
- Trading and hedging on exchanges as a “cash-like” asset to move in and out of more volatile crypto positions.kraken+1
- Payments, remittances, and DeFi: sending money globally with low fees, using USDC in lending/borrowing protocols, and settling online commerce in a dollar-pegged asset.usdc+2
Key risks to know
- Users are exposed to issuer and reserve risk: if the reserve assets or the issuing company encounter problems, the 1:1 redeemability could be affected.ledger+1
- There are also regulatory and technical risks, since USDC depends on both traditional financial institutions (for reserves) and the underlying blockchains (for transfers and custody).gemini+1
- https://en.wikipedia.org/wiki/USDC_(cryptocurrency)
- https://www.circle.com/usdc
- https://www.kraken.com/learn/what-is-usd-coin-usdc
- https://www.usdc.com/learn/what-is-usdc
- https://www.gemini.com/cryptopedia/what-is-usdc-stablecoin-circle-crypto
- https://www.usdc.com
- https://www.osl.com/en/academy/article/understanding-usdc-what-is-it-and-why-is-everyone-talking-about-it
- https://www.ledger.com/academy/what-is-usd-coin-usdc
- https://www.coinbase.com/usdc
- https://www.youtube.com/watch?v=xe45XBE66Ik