What is USD Coin?

USD Coin (USDC) is a regulated, fully-backed stablecoin pegged to the US dollar. Launched in 2018 by the Centre Consortium, a collaboration between Circle and Coinbase, USDC is designed to provide price stability and transparency, making it a widely used digital asset for payments, trading, and decentralized finance (DeFi).

Key features of USD Coin:

• Stable Value Pegged to USD
  USDC is a stablecoin, meaning its value is always intended to be equal to one US dollar (1:1 peg). This stability is maintained by holding an equivalent amount of US dollars or highly liquid cash-equivalent assets in reserve.
  
  
• Transparency and Regulation
  Unlike many cryptocurrencies, USDC is issued by regulated financial institutions. It undergoes regular audits by third-party accounting firms to verify that reserves fully back the circulating supply, ensuring transparency and trust in the system.
  
  
• Multi-Blockchain Support
  USD Coin is available on multiple blockchain networks, including Ethereum, Solana, Avalanche, Algorand, and more. This allows users to transfer USDC quickly and at lower costs depending on the chosen network.
  
  
• Use Cases in Payments and DeFi
  USDC is widely used for global payments, remittances, and as a stable trading pair on cryptocurrency exchanges. Additionally, it plays a major role in decentralized finance (DeFi), where it is used for lending, borrowing, and earning interest through yield farming.

The difference between USD Coin and Bitcoin
While Bitcoin is a decentralized digital currency with a fluctuating value, USD Coin is a stablecoin designed to maintain a fixed value of $1. Bitcoin serves as a store of value and an investment asset, whereas USDC is primarily used for price stability, quick settlements, and financial transactions.