What is the backing behind USDC in the world of cryptocurrencies?

1 answers

• Jan 20, 2022 · 3 years ago
  USDC, or USD Coin, is a stablecoin that is backed by a reserve of US dollars. This means that for every USDC token in circulation, there is an equivalent amount of US dollars held in reserve. The reserve is held by Circle and Coinbase, two well-known companies in the cryptocurrency industry. This backing mechanism ensures that the value of USDC remains stable and pegged to the US dollar. Compared to other stablecoins, USDC has gained popularity due to its transparency and regulatory compliance. It is important to note that USDC is not the only stablecoin backed by US dollars, as there are other options available such as Tether (USDT) and TrueUSD (TUSD). However, USDC has gained trust and recognition in the cryptocurrency world due to its backing by reputable companies and its adherence to regulatory standards.
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