USDC

What is USDC?

USD Coin or USDC was initially designed as an Ethereum-exclusive ERC-20 stablecoin by Coinbase and Circle in 2018. Today, it’s available in other variations, including the BSC (BEP-20) variant, Solana, Algorand, Polygon, etc. It uses the Ethereum network for token transfers and storage, which is good news if you use other ERC-20 tokens.

USDC is regulated and governed by Center Consortium - a financial institution tasked with the governance of the technical and financial standards of the stablecoin and ensures transparency in transactions involving exchanges with a true 1:1 backing. Therefore, for every USDC created, the Federal Reserve holds $1 in the form of US Dollars and other financial assets.

A total of 34.7 billion USDC is currently in circulation in the crypto world, with an equivalent dollar amount held in reserve. Only select financial institutions that meet Circle’s membership-eligibility requirements can issue USDC to ensure its expansion in the digital asset ecosystem.

How can I use USDC?

USDC is the only stablecoin supported by the Coinbase system, which is recommended for users in the US. You can convert it for other cryptocurrencies or cash out the token balance in your bank account. This dynamic ensures that the USDC price is locked at $1 USD, alleviating any issues or risks related to price volatility. Besides, USDC is also viable in any dApp based on the ERC-20 standard.