What Is USD Coin USDC?

To maintain USDC’s stable value equal to $1, USDC is backed by cash and short-term U.S. government bonds as collateral. 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.

In a transparency move, Circle Internet Financial LLC (Circle), the issuer of the USDC stablecoin released its reserves report as of July 31, 2022. You can, for instance, deposit it in BlockFi, a loans company that offers you interest for depositing USDC (among other coins). It is available as Ethereum ERC-20, Algorand ASA, and Solana SPL tokens that can be purchased using US Dollars on several major exchanges. Circle says there is a total supply of four billion tokens in circulation right now.

USDC reserves are held in segregated accounts in the United States with regulated U.S. financial institutions in the form of cash and short-duration U.S. USDC is a fiat-backed stablecoin, with each coin in circulation backed by one dollar held in reserve. As the stablecoin market continues to experience exponential growth, USDC is well-positioned to play how to buy everrise a pivotal role in the widespread adoption of cryptocurrencies and decentralized finance (DeFi).

How Much Is a USD Coin Worth?

That means you can transfer USDC without a middleman tampering with the transaction or taking a cut of the fee. USDC was developed to be used in place of the U.S. dollar in the crypto world and make it easy to exchange and use it. As it’s pegged to the U.S. dollar, you can rely on its consistent value even as the value of other cryptocurrencies fluctuate. Frax has designed a stablecoin protocol backed by both asset collateralization and mathematical cryptographic algorithms. Furthermore, investors can earn interest on USDC holdings on a few crypto exchanges.

What can you do with the US Dollar Coin?

USDC has a variety of uses in the crypto marketplace, but is commonly deployed in decentralized finance (DeFi) protocols and by traders. USDC has witnessed impressive adoption and significantly impacted the cryptocurrency space. Its global accessibility has made it particularly valuable for the unbanked population and individuals who lack access to traditional financial institutions. With just an internet connection, anyone can utilize USDC to promote financial inclusion, regardless of their background or location. It has gained traction in emerging markets and countries with how to buy bitcoins and cryptocurrencies 2021 volatile economies, providing a stable alternative to local currencies.

USDC’s value and stability are closely tied to its pegging to the U.S. dollar and adherence to regulations. Any changes in regulatory policies can directly impact the stability and value of USDC. This makes it crucial for users and investors to stay informed about regulatory developments and potential implications. The USD Coin price page is just one in Crypto.com Price Index that features price history, price ticker, market cap, and live charts for the top cryptocurrencies. To check USD Coin’s price live in the fiat currency of your choice, you can use Crypto.com’s converter feature in the top-right corner of this page.

What is USD Coin used for?

• However, discrepancies or inaccuracies in audit reports could undermine user confidence in the stablecoin.
• Unsurprisingly, Jeremy Allaire, co-founder and CEO of Circle, was elated, tweeting that it was “a huge win for crypto and stablecoins.”
• Furthermore, USDC’s adoption has a transformative impact on financial inclusion.
• Given its similarity to traditional fiat currency USD and familiar unit of account, USDC is heavily used as a trading currency between other cryptocurrencies.

He started Hedge With Crypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world. While many crypto assets are termed unsafe, USDC is not considered a risky asset due to its regulatory position and is one of the safest stablecoins to use in the crypto industry. It is the largest regulated stablecoin by US authorities and is a licensed money transmitter service like PayPal and Stripe. Moreover, since USDC holds short-dated US Treasuries and cash deposits within the US banking system, it’s considered a safer crypto option for many investors.

USDC first launched on the Ethereum blockchain as an ERC-20 token, but has since expanded to other blockchains including Solana, Stellar, and Algorand. It can be purchased on both centralized and decentralized exchanges (DEXs). Additional benefits of stablecoins like USDC can be uncovered within decentralized applications (dApps) and decentralized finance (DeFi).

These features contribute to the widespread adoption and popularity of USDC within the crypto community. You can buy USDC on almost every centralized and decentralized exchange today. However, every platform offers a different level of security (and a different price). One of the easiest ways to get your hands on some USDC is via the Ledger ecosystem.

It follows all global anti-money laundering and anti-terrorism financing rules, which means all users’ deposits. That said, there have been factors that have helped USDC enjoy an explosion in popularity over the years — especially in 2020. One of them is the sudden, sharp rise in the popularity of decentralized finance. USDC is a common sight on many DeFi protocols given how it serves as an onramp to the wider ecosystem. The stablecoin market has become exceedingly crowded over recent years — but USDC has aimed to stand head and shoulders over competitors in several ways.

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. Keep reading to understand more about USDC, including how it works and the various use cases for the digital currency. Stripe reemerged in the crypto sector last month when it rolled out support for USDC settlements. The payments giant previously enabled payments made using Bitcoin (BTC) until 2018, when the firm discontinued its support, citing BTC’s lack of utility as a payments rail. Circle chief executive Jeremy Allaire says the new development is part of the nem launches symbol the next stablecoin company’s efforts to scale USDC. If you are new to crypto, use the Crypto.com University and our Help Center to learn how to start buying Bitcoin, Ethereum, and other cryptocurrencies.

Integration to enhance DeFi use cases on Aptos, expand interoperability, and streamline global payment solutions for merchants. USDC has the benefits of both being a stable store of value and being programmable. The latter opens up a world of possibilities for applications and businesses. USD Coin (USDC) is an ERC-20 token that mainly runs on the Ethereum network. USD Coin’s price today is US$0.9936, with a 24-hour trading volume of $9.37 B.

It does this by keeping one dollar or cash equivalent in reserve for each USDC in circulation. While USDC is backed, it’s important to note that the reserves do not only contain dollars. If there is an imbalance or error in any of their calculations, or a cash equivalent they hold in reserve is worth more or less than it was previously, it may temporarily skew the price of USDC. USDC also provides an open-source smart contract for companies to develop blockchain products such as wallets and exchanges.