What Is USD Coin USDC?

What is USD Coin

Transaction costs are low cost, making it cost- and time-efficient to use. The year-to-date return on Bitcoin is -35% as of this writing, for example. Meanwhile, the value of USDC has remained almost completely flat year to date. The lowest trading price that USDC has fallen to within the last 52 weeks is $0.995, a slight dip below its dollar peg. Launched in 2018 by Centre, a consortium founded by Circle and Coinbase, USD Coin was created as a regulated stablecoin that runs on blockchain technology.

  • In fact, it earns a top billing as the second biggest stablecoin after Tether, with more than $51 billion worth in circulation as of writing.
  • That’s similar to other coins that run on the Ethereum blockchain.
  • While USDC is backed, it’s important to note that the reserves do not only contain dollars.
  • USDC is backed by real assets, and is sometimes referred to as a fiat-collateralized stablecoin.
  • This strategic reserve approach effectively cements the connection between USDC and US dollar values.

These include software wallets such as Coinbase Wallet and Exodus or hardware wallets such as Ledger. The main unique feature of USD Coin is that it’s always worth $1. That’s a big difference from highly volatile coins including Bitcoin, Ethereum, and Dogecoin that may see big price swings in a single day. Like most of the crypto industry, USD Coin is largely unregulated in the US. This means your investment could be at risk should the government decide to crack down on crypto. It also means that your investment isn’t protected by traditional banking laws.

Special Features of USD Coin

USDC, often dubbed the USD Coin, stands tall amid the stablecoin spectrum. While predominantly anchored to the US dollar in a near 1-to-1 ratio, there have been moments where this peg has slightly wavered. Such fluctuations, though rare, highlight the challenges of seamlessly blending traditional finance (TradFi) with the unpredictable world of cryptocurrencies. To buy USDC in the U.S., you’ll need to use a crypto exchange. A cryptocurrency exchange is an online marketplace where you can buy and sell crypto. Its issuer, Circle, continues to expand USDC’s presence throughout the cryptocurrency ecosystem.

What is USD Coin

You can even view monthly reports of these reserve balances, including how much USDC is in circulation and its equivalent value in U.S. dollars. As its name suggests, USD Coin (USDC) is a cryptocurrency whose value is tied to the U.S. What is USD Coin dollar. USD Coin is a stablecoin, and as such one USDC should always be equal in value to one dollar. The purpose of this website is solely to display information regarding the products and services available on the Crypto.com App.

Comparing USD Coin to Other Cryptocurrencies

That’s because hardware wallets are non-custodial, meaning only you have access to your funds. Plus, they are also immune to online threats, meaning you can explore the web3 ecosystem without worrying about hackers accessing your USDC. In the same vein, USDC has a back door that allows Circle to stop payments if it believes the funds are being used illicitly. This was confirmed by Circle in July 2020 when it froze $100,000 of the stablecoin at the behest of law enforcement. The customer can also convert the USDC back into US Dollars, which will then be wired back into their bank account. The US Dollar Coin isn’t the first or even the most popular US Dollar-backed coin.

What is USD Coin

Before the issuance of USDC, the equivalent amount of USD is with one of Circle’s accredited partners. Consequently, all USDC tokens are regulated, transparent and verifiable. Besides, https://www.tokenexus.com/who-invented-ethereum-review-about-ethereum-creator-vitalik-buterin/ Circle is known as the crypto startup backed by Goldman Sachs. USD Coin is a stablecoin operated by Centre through a collaboration with Circle and Coinbase, two major crypto companies.

Permissionless and Almost Instantaneous Cross-Border Payments

Ethereum, its native blockchain, is often slow and beleaguered by bottlenecks. So Centre has forged partnerships with Algorand, Stellar and Solana, rival blockchains, to expand the market. You can also use USDC in a variety of decentralized finance protocols.

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