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. When crypto investors buy USD Coin, they expect one USDC to always be equal in value to one dollar. The most common use case is to purchase USDC, store it on an exchange or in a crypto wallet, and then use it to fund purchases of other cryptocurrencies. To maintain USDC’s stable value equal to $1, USDC is backed by cash and short-term U.S. government bonds as collateral. For every USDC token in circulation, $1 is held in collateral.
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- The most experienced and professional traders often choose to use the best crypto API on the market.
- No matter what country you are from and the rules they may have, receiving remittances using USDC is easy.
- Like a bank, the platforms lend out the USDC at interest and pass on some of the profits to the depositor.
- USD Coin (USDC) is a stablecoin launched in 2018 by Centre, which is a consortium created by Circle and Coinbase.
- USDC is a stable store of value that benefits from the speed and security of blockchain technology.
- Put simply, USDC’s mantra is “digital money for the digital age” — and the stablecoin is designed for a world where cashless transactions are becoming more common.
Although they follow US regulations, it’s understandable that you may want to know the full details of how they are backing your assets. If the reserves aren’t managed properly, you could end up losing your funds. In the same vein, USDC has a back door that allows Circle to stop payments if it believes the funds are being used illicitly. This was confirmed What is USD Coin by Circle in July 2020 when it froze $100,000 of the stablecoin at the behest of law enforcement. There is no maximum or total supply of USD coin, as new tokens are issued based on demand. As you might expect, one of the most enthusiastic exchanges that offers USDC is Coinbase, given how the exchange was involved in this stablecoin’s creation.
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Since it is open source, it is possible for other people to use the majority of the code, make a few changes and then launch their own separate currency. However, they all share the same moniker — every coin issued after Bitcoin is considered to be an altcoin. At the time of writing, we estimate that there are more than 2 million pairs being traded, made up of coins, tokens and projects in the global coin market. As mentioned above, we have a due diligence process that we apply to new coins before they are listed. This process controls how many of the cryptocurrencies from the global market are represented on our site.
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The stablecoins have the same uses and normally keep a value of $1. However, each has advantages over the other, so they’re not entirely interchangeable. https://www.tokenexus.com/ The most important factors for a stablecoin are transparency and trustworthiness — areas where USD Coin does a better job than most of its competitors.
What Is USD Coin (USDC)?
- Once verified, we create a coin description page like this.
- We recommend that you review the privacy policy of the site you are entering.
- We also list all of the top NFT collections available, including the related NFT coins and tokens..
- USDC is a common sight on many DeFi protocols given how it serves as an onramp to the wider ecosystem.
- In our deep-dive into Ethereum’s fundamentals, we discussed how the blockchain was built to support smart contracts.
- In the same vein, USDC has a back door that allows Circle to stop payments if it believes the funds are being used illicitly.