USD Coin (USDC) is a stablecoin tethered to the U.S. Dollar. Every USDC token is backed by a fiat reserve held in cash, cash equivalents, and short-duration U.S. Treasuries. The total supply of USDC amounts to over $190 billion.
USDC was launched in 2018 by a Consortium called "Center" and was founded by both Circle and Coinbase. USDC is an ERC 20 compatible token, meaning that it is available on the Ethereum blockchain.
USDC is widely considered the most secure stablecoin as it is backed by centrally regulated companies and not anonymous partners. USDC is more committed to transparency than many stablecoins, as it operates within U.S. money transmission laws and regulations.
Hence, USDC maintains its U.S. dollar peg with increased interoperability and a verified legal framework. On the other hand, USDT, with more widespread use, is run by Tether, an offshore entity that lacks public audit clarity and proof of collateral funds.
USDC algorithmically issues and burns tokens according to every deposit and redemption. Therefore, the 1:1 dollar peg ratio is maintained purely through supply and demand.
USDC has maintained its U.S. Dollar peg since its inception remarkably well, making it a viable store of value. USDC is designed as a digitally native method of transferring payments quickly and cost-effectively. USDC can also be used by global businesses and internet marketplaces as an efficient method for instant payouts.
USDC is steadily rising as the preferred stablecoin amongst cryptocurrency investors. We offer high liquidity trading pairs with USDC on OKX, such as BTC/USDC, ETH/USDC, XRP/USDC, LTC/USDC, and many more. Sign up for an OKX account to securely buy USDC today.