What is USDC? Beginner’s Guide (2021) – Decrypt

In brief

  • US Dollar Coin (USDC) is a stablecoin, a type of token that is backed by real-world assets.
  • It was created in a joint venture by fintech company Circle, and crypto exchange Coinbase.
  • Initially an ERC-20 token, it has expanded beyond Ethereum to other blockchains.

After the wild ride of Bitcoin, some investors want more stable cryptocurrencies. Enter ‘stablecoins’—tokens that are backed by real-world assets. The US Dollar Coin (USDC) is one of a flurry of such stablecoins that are worth the same as the US Dollar.

Can it help ease crypto anxiety? We find out below.

What is US Dollar Coin?

The US Dollar Coin is a stablecoin that claims to have a 1:1 value with the actual US Dollar. Essentially, that means one US Dollar Coin (USDC) should equal one real US Dollar, giving some much-needed stability in the market. Originally an ERC-20 token, it has since expanded to the Algorand and Solana blockchains.

Did you know?

Circle is behind CENTRE, a consortium that creates frameworks and standards to improve mainstream adoption of stablecoins.

Who created US Dollar Coin?

The US Dollar Coin was created in a joint move by Coinbase, the hugely popular cryptocurrency exchange, and Circle,
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