USD Coin is also available to trade on a number of other popular cryptocurrency exchanges, including Binance, Bitfinex, Coinbase, Crypto.com, Kraken, and Uniswap. New coins are minted every time someone buys or converts currency and acquires USD Coin. If that happens, a new dollar is added to the bank account behind USD Coin. The idea behind USDC was to create a stablecoin pegged to the U.S. dollar, making it a more stable and predictable cryptocurrency.
- But in 2021, it was expanded to other blockchains, including Algorand and Solana.
- As a cryptocurrency, USD Coin (USDC) is generally considered risky as an investment.
- USD Coin (USDC) is a fiat-collateralized stablecoin, meaning that USDC tokens are collateralized by fiat money like U.S. dollars.
- The features of USD Coin explained in detail can offer credible advantages for revising the way you perceive stablecoins.
- Tether had claimed that they had a real dollar in the bank backing every Tether token in circulation.
- If that happens, a new dollar is added to the bank account behind USD Coin.
In his free time, he likes playing games on his Xbox and scrolling through Quora. The US Dollar Coin isn’t the first or even the most popular US Dollar-backed coin. It once What is USD Coin claimed to have a real dollar in the bank for every Tether in circulation, but an investigation by the New York Attorney General caused it to step back from that claim.
Ethereum Classic
The use cases of USD Coin explained in detail would also focus on how it aids governance. USDC, along with many other stablecoins, have found many use cases in governance policies. As a matter of fact, USDC enables easier transfer of relief funds because of the ability to transfer to internet-connected businesses and individuals.
- USDC can be transferred 24/7 and is faster to send than traditional currencies, with settlements occurring in seconds.
- 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.
- Georgia Weston is one of the most prolific thinkers in the blockchain space.
- You can buy USDC on almost every centralized and decentralized exchange today.
- With USD Coin’s reserves, people who own it should always be able to exchange it for an equivalent amount of U.S. dollars.
The popularity of USDC or USD Coin increased by huge margins after its availability for trading in more than 80 countries. At the same time, DeFi solutions have also led to massive growth in the demand for US Dollar coins. As of now, the circulating supply of USDC has crossed 9 billion, with a promising future revolving https://www.tokenexus.com/ around evolution of infrastructures pertaining to permissionless decentralized protocols. USDC is usually held as a stable asset by crypto traders, just like other stablecoins such as Tether and DAI. Stablecoins are useful for traders who want to have an easy way to trade cryptocurrencies for US dollars.
Industry Products
It was developed by Centre, a technology project backed by cryptocurrency exchange Coinbase and Fintech company Circle. In November 2020, Circle announced that it’s working with the US government to divert aid to Venezuelan healthcare workers through the country’s exiled government is in exile. The US Treasury and the Fed gives money to its acting president, Juan Guaidó.
As a cryptocurrency, USD Coin (USDC) is generally considered risky as an investment. While stablecoins like USDC have less price volatility than other cryptocurrencies, stablecoins may be subject to increased scrutiny by regulatory agencies like the U.S. There is a business behind USDC also, so it must function well for the coin to remain pegged to the dollar.
