Have you ever imagined that 1 crypto price is the same as 1 USD. That crypto is US Dollar coin USDC. So what is US dollar coin (USDC). USD Coin (USDC) is a cryptocurrency backed by fiat currency, making it a stablecoin.
What is US dollar coin (USDC)?
USD Coin (USDC) is a relatively new dollar-pegged stablecoin. It was launched on September 26, 2018, by Circle and Coinbase in partnership. USDC is an alternative to other USD-backed cryptocurrencies like Tether (USDT) or TrueUSD (TUSD) .
USD Coin was created by the popular cryptocurrency exchange Coinbase and Boston-based crypto finance company Circle. The circle is backed by several high-profile firms, including Goldman Sachs.
Each USDC is backed by one dollar or its fair value equivalent and held in accounts with regulated financial institutions in the United States. Bringing dollars to the blockchain can transfer them anywhere in the world in minutes and bring much-needed stability to cryptocurrencies. Additionally, it opens up new opportunities for trading, lending, risk hedging, and more.
How does USDC work?
USDC was developed to replace the US dollar in the cryptocurrency world and make it easy to convert and use. Since it's pegged to the US dollar, you can rely on other cryptocurrencies to have a consistent value even if their value fluctuates.
To keep USDC's stable value equal to $1, USDC is collateralized by cash and short-term US government bonds. For every USDC token in circulation, there is $1 as collateral.
Now you know about one of the stable cryptos what is US dollar coin (USDC). Likewise, the overall goal of USDC is to help businesses and individuals transfer money in a faster and more cost-effective manner by eliminating the need for traditional intermediaries such as banks and providing a stable cryptocurrency.
