What is USD Coin (USDC ) and how does it work?

USD Coin (USDC) is a stablecoin that is pegged to the United States (US) dollar and runs on the Ethereum blockchains. It was launched in September 2018. USD Coin is managed by a consortium called Centre, which was founded by Circle and includes members from the Coinbase cryptocurrency exchange

Similarly to USDT, USDC crypto is a stablecoin because it is a new class of cryptocurrency that attempts to offer price stability and is backed by a reserve asset, based on Ethereum’s ERC-20 standard, which makes it interoperable with most major wallet and custody services. Hundreds of companies, products, and services support the USDC standard, including digital wallets, exchanges, DeFi protocols, savings, lending, and payment services. 

Stablecoins have gained traction as they attempt to offer the best of both worlds; the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.


How does USD Coin work?

USD Coins are pegged to US Dollars and every USDC token is backed with a single US dollar. The process of turning US dollars into USDC tokens is called tokenization.

There are three-step processes that you need to tokenize USD into USDC. The process are:

1) A user sends USD to the token issuer’s bank account.

2) The issuer uses a USDC smart contract to create an equivalent amount of USDC.

3) The newly minted USDC is delivered to the user, while the substituted US dollars are held in reserve.

Exchanging  USDC for USD is as easy as minting the token, except the process is reversed:

1) A user sends a request to the USDC issuer to redeem an equivalent amount of USD for USDC tokens.

2) The issuer sends a request to the USDC smart contract to exchange the tokens for USD and take an equivalent.


What is the USDC price?

The live USD Coin price today (as of the time this article was published)  is $0.999787 USD with a 24-hour trading volume of $3,059,081,982 USD, with a live market cap of $27,991,510,951 USD. It has a circulating supply of 27,997,468,126 USDC coins and the max. supply is not available.

USDC price
USDC Price chart

Where can you buy USD Coin (USDC)?

USDC  can either be bought directly from the issuer or can be traded on crypto exchanges. If you are looking for where to buy USD coins? You can buy USDC on all of the major crypto exchanges. USDC trading remains one of the easy ways to make money with cryptocurrency.

Sign up on Bitmama today and buy USDC with ease! It’s simple!

Also Read

What is Ethereum And How Does It Work?


Bitmama Team

Aug 11, 2021

2 mins read

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