What is USDC?

Modified on Mon, 27 May 2024 at 09:40 AM

USDC is a stablecoin anchored to the US dollar and initially minted on Ethereum. The currency is backed by a reserve of assets, including short-term US Treasury bonds and FIAT currency. There is no public audit to verify the stablecoin's backing, but accounting service firms provide monthly certifications.

Currently, USDC is the second-largest stablecoin by market capitalization and has held this position for much of its history. You can mint USDC directly with US dollars without incurring any fees. This is done in three stages:

  1. US dollars are transferred to the USDC bank account.
  2. USDC uses a smart contract that mints USDC in quantities equal to the funds received.
  3. The newly minted tokens are sent to the user, and the USD is held in a reserve account.

The project was created as a joint venture between Coinbase and Circle, leading to the creation of the Centre Consortium. USDC is now available on the Algorand, Avalanche, Ethereum, TRON, Stellar, Solana, and Hedera blockchains.

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