USD Coin (USDC) is a stablecoin pegged to the value of the US dollar, meaning 1 USDC is worth the same as 1 USD. USDC is a type of cryptocurrency that is designed to maintain a stable value, in contrast to most other cryptocurrencies which can have high volatility. USDC is issued by fintech company Circle and supported by Coinbase, one of the world's largest cryptocurrency exchanges.
USDC operates on various blockchains such as Ethereum, Algorand, Solana, and others. Each USDC issued is backed by US dollar reserves held in a separate bank account, ensuring that users can always exchange 1 USDC for 1 USD. Stablecoins such as USDC are often used in cryptocurrency trading, international payments, and decentralized finance (DeFi) applications due to their greater stability compared to other cryptocurrencies.
