USD Coin known by its ticker USDC is a type of cryptocurrency known as a stablecoin. USDC is developed by the Centre Consortium and its value is pegged to the US dollar on a 1:1 basis.
The Centre consortium, known colloquially as Centre, was founded in 2018 by a cryptocurrency exchange, Coinbase, and a peer-to-peer (P2P) payments service provider, Circle. Centre is licensed in the U.S. as a money transfer service provider and in Europe as an electronic money institution (EMI). The consortium supplies USDC and redeems it for the U.S. dollar at no extra fee.
USDC tokens have an unlimited supply and are created with market demand. Currently, the circulating supply is over 10.6 billion tokens ($10.6 billion) with an equivalent market cap.
USDCs are ERC-20 tokens and they operate exclusively on the Ethereum blockchain accessing top features from the industry-leading smart contract platform. This presents the stablecoin’s major advantage as it can easily be integrated with the many decentralized applications (dapps) built on the Ethereum network. Also, it can be stored in any wallet compatible with Ethereum.
USDC tokens leverage the power of on-chain digital dollars to ensure transfers as fast and affordable as sharing digital content.
For security, funds held as collateral for USDC are stored in segregated bank accounts. This means that the funds are stored in separate accounts from the consortium’s so they can never be misappropriated or interfered with. Therefore, the USDC holder is assured of the safety of their funds.
Centre remains transparent, as accounts are monitored and audited monthly by third parties to ensure that money held is equivalent to USDC tokens in the circulating supply. Also, Circle and Coinbase which are USDC’s top backers, have ensured compliance with regulatory authorities opening up the project to operations across several countries.
USDC has several applications. One major use case is being a stable store of value for cryptocurrency traders as crypto markets often experience high volatility.
Also, with USDC, businesses can expand their payment gateways to start accepting crypto payments. This helps the businesses to access new markets and significantly minimize costs for global payments.
The token has several other applications. These include decentralized financial services (DeFi) and gaming. USDC aims to be the asset of choice accepted across multiple cryptocurrency wallets, exchanges and businesses.
Built on the largest stablecoin ecosystem and being one of the top stablecoins, USDC is supported on multiple exchanges including Coinbase, Binance, KuCoin, Uniswap, Huobi Global, OKEx, and Kraken. You can purchase USDC using the U.S. dollar, Bitcoin, or any supported cryptocurrency.
Learn more here: