What is USDC?
USDC is one of the largest stablecoins, with its value pegged to the US dollar. Each token is backed by reserves — funds in bank accounts and short-term Treasury bills, with reports regularly published and independently audited.
How it works
The issuer mints USDC when dollars are deposited and redeems tokens upon exchange, maintaining a 1:1 parity. The token operates across multiple blockchains and is used in DeFi protocols, international transfers, and as a unit of account in trading pairs.
Advantages and disadvantages
- Advantages: high transparency of reserves, focus on regulatory compliance, widespread support in services.
- Disadvantages: dependence on the issuer and banking infrastructure, possibility of address freezing, risk of temporary peg loss during market stress.