Cryptopedia does not guarantee the reliability of the Site content and shall not be held liable for any errors, omissions, or inaccuracies. The how to read candlesticks crypto opinions and views expressed in any Cryptopedia article are solely those of the author(s) and do not reflect the opinions of Gemini or its management. A qualified professional should be consulted prior to making financial decisions. Stay up to date with our latest exchange reviews, promotions, how-to guides and educational articles on Bitcoin, cryptocurrency & more. To provide further transparency, USDC is regularly audited once a month using attestation standards laid out by the American Institute of Public Certified Accountants (AICPA).
USDC primarily focuses on the practical use case of value transfer through tokenized dollars. This means users can easily send value across borders but should not expect any value appreciation since how to cash out bitcoin it is fiat-pegged to the US. In essence, an investor’s USDC stash will always remain the same in its fiat currency equivalent so it should not be purchased as an investment. In addition to partnering with the world’s largest asset manager, the stablecoin provider has inked other deals with big names from the world of traditional finance. In March, news broke that America’s oldest bank BNY Mellon would serve as the primary custodian of the assets backing USDC stablecoins. Meanwhile, a press release revealed that BlackRock will serve as a primary asset manager of USDC cash reserves.
Reliance on Third-Party Services
As a digital currency operating on the Ethereum blockchain, USDC is susceptible to smart contract vulnerabilities. Malicious actors can exploit these vulnerabilities to compromise the security of USDC transactions and holdings. It is crucial for USDC developers and supporting platforms to continually enhance security measures and conduct thorough code audits to mitigate these risks. USDC can be bought on a variety of cryptocurrency platforms, including the Crypto.com App and Exchange.It’s also important to note that USDC is not available on all platforms. Some cryptocurrency exchanges may not offer this token due to regulatory or other considerations. Therefore, you may need to try multiple platforms to find one that supports USDC.
This solves many of the problems of volatility that other crypto assets may bring when being used as a store of value or for everyday transactions, or as a safe haven during periods of market volatility. USDC transactions and fees rely on third-party services like exchanges and payment processors. Monitoring and ensuring the reliability and security of these third-party services is essential to maintain smooth operations within the USDC ecosystem.
USD Coin (USDC) — A Stablecoin Pegged to the U.S. Dollar
Its mission is to “raise global economic prosperity through the frictionless exchange of value”. To achieve this, it announced its digital dollar in May 2018, during the bear market, and launched in September of the same year. Then in 2021, Circle launched another stablecoin, EURC, pegged to the value of the Euro. USDC exchanges and partners are obligated to report their U.S. dollar holdings regularly. USDC, a stablecoin pegged to the U.S. dollar, offers various use cases within the cryptocurrency space that cater to different needs. Whether you’re an investor, a business owner, or someone in need, USDC provides solutions that leverage the benefits of blockchain technology while delivering stability and efficiency.
In addition, the Centre consortium holds USDC’s equivalent value in reserve as cash in regulated US financial institutions or as dollar-denominated assets like US Treasury Securities. The adoption of USDC also drives the growth and acceptance of cryptocurrencies globally. As more individuals and businesses recognize the benefits of USDC’s stability and accessibility, they are more likely to embrace cryptocurrencies. This adoption fuels innovation in the blockchain space and paves the way for further advancements in digital finance. Within the cryptocurrency ecosystem, USDC allows for easy and seamless transactions.
What is USDC – Your Guide to Digital Dollars
This promotes greater financial inclusion by offering individuals a secure and reliable means to store and transact value, regardless of location or financial status. Circle, the company behind USDC, ensures regular reporting on reserves, giving users visibility into the underlying assets that back each USDC token. This transparency builds trust and confidence among users, as they can verify the stability and legitimacy of the stablecoin. Welcome to your comprehensive guide to USDC, the digital currency revolutionizing the world of cryptocurrencies.
USDC is an open source protocol, which means anyone can use it — not just Circle and their partners. Unlike some crypto ventures, Circle and Coinbase have also achieved regulatory compliance — and this has helped pave the way for international expansion. The US Dollar Coin isn’t the first or even the most popular US Dollar-backed coin. It once claimed to have a real dollar in canada approves breakthrough bitcoin exchange fund the bank for every Tether in circulation, but an investigation by the New York Attorney General caused it to step back from that claim. You can make passive income with USDC by lending it to other crypto investors. But of course, no investment is risk-free, and you are taking a little bit of risk on borrowers in gaining a yield on USDC.
Aptos Foundation is dedicated to supporting the development of the Aptos protocol, decentralized network and ecosystem and driving engagement with the Aptos ecosystem. By unlocking a blockchain with seamless usability, Aptos Foundation aims to bring the benefits of decentralization to the masses. Stripe’s payment services will provide a fiat on-ramp for the Aptos network, according to a new press release from the layer-1 project. We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We’re also a community of traders that support each other on our daily trading journey. Founded in 2012, Coinbase is a trading platform registered in the United States with a legal digital currency trading license, which has KYC and AML standards for its clients.
Furthermore, it also provides a safe haven for crypto traders in times of volatility, without the need to pull funds out of crypto completely. USD Coin (USDC) is a cryptocurrency designed to maintain a constant value of $1 USD. Stablecoins are a reliable alternative to the volatility of traditional cryptocurrencies as they maintain price stability (most of the time). Among the popular stablecoins is Centre’s USD Coin (USDC), a tokenized US dollar. USDC is backed by dollar assets equivalent to one US dollar, making it a familiar unit of account to transfer value across the network and convert it into other cryptocurrencies.
- Stablecoins are a type of cryptocurrency whose value is pegged to another asset, such as a fiat currency, a commodity or even another crypto coin.
- That means you can skip the risk of a centralized exchange wallet powering down and leaving you without access to your assets.
- Furthermore, USDC’s compatibility with multiple blockchains sets it apart from many other stablecoins.
- USDC primarily focuses on the practical use case of value transfer through tokenized dollars.
- USDC is backed by dollar assets equivalent to one US dollar, making it a familiar unit of account to transfer value across the network and convert it into other cryptocurrencies.
USDC aims to ensure transparency by conducting regular audits to verify its reserve holdings. However, discrepancies or inaccuracies in audit reports could undermine user confidence in the stablecoin. Therefore, it is essential for USDC to consistently maintain accurate and reliable auditing practices to instill trust and credibility among its user base. USDC is an ERC-20 token, so when it comes to security, it relies on the underlying Ethereum network. If you’re worrying about the security of its peg, then that responsibility lies with Circle.
Those accounts are audited by U.S. accounting firm Grant Thornton LLP, which issues monthly attestations on the reserves backing USDC. MakerDAO’s decentralized stablecoin DAI, for example, is issued against cryptocurrency collateral that users deposit on-chain. USD Coin (USDC) is a stablecoin, a cryptocurrency backed by U.S. dollars or dollar-denominated assets like U.S. USDC’s cash assets are held in segregated accounts with regulated U.S. financial institutions and its reserve portfolio is held at the Bank of New York Mellon.
There are also no middlemen processing transactions, meaning there’s no one to control who you can and can’t send funds to. No matter what country you are from and the rules they may have, receiving remittances using USDC is easy. Since USDC operates on the blockchain, it benefits from the features of blockchain technology, such as the permissionless p2p transfer of assets.