USD Coin (USDC) is a stablecoin cryptocurrency that aims to provide users with a digital representation of the US dollar. Launched in September 2018, USDC is issued by regulated financial institutions and operates on the Ethereum blockchain as an ERC-20 token.
USDC is pegged to the US dollar on a 1:1 basis, meaning that each USDC token is backed by one US dollar held in reserve. Its stable value makes it a popular choice for users seeking to hedge against cryptocurrency volatility or access US dollar liquidity in digital form.
The total supply of USDC is dynamic and fluctuates based on market demand. New USDC tokens are minted when users deposit US dollars into the reserve, and existing tokens are burned when users redeem them for US dollars. This ensures that the supply of USDC remains in line with market demand and maintains its stable value.
