USDC/USD - USD Coin US Dollar

USD Coin is a fiat-backed digital currency created by Circle and managed by a consortium called Center. Pegged to the US dollar, the USD coin is the second most popular stablecoin after Tether. It has expanded its operations beyond the Ethereum network and is now available on several protocols, including Stellar, Algorand, Solana, Tron, and the Hedera Hashgraph network. Aside from Circle, other notable investors like popular US crypto exchange Coinbase and Bitcoin mining company Bitmain have vested interests in the USD coin. The coin serves as the payment rail for most crypto investors to access the decentralized finance (DeFi) ecosystem and the larger crypto market.

To buy USD Coin, you will have to open an account with any exchange that supports the stablecoin. The most popular option is to use Coinbase, where you can easily convert other cryptocurrencies to USDC. Once your account is created, you can go ahead and buy any amount of USD Coin you want. Remember that the USD Coin is pegged on a 1:1 ratio to the US dollar, so you won’t be getting more than the amount you put into it. Once you complete your purchase, you can leave it on the platform or send it to a private wallet. You can also consider using hardware wallets like Ledger Nano series or Trezor to keep your USD Coin safe.

The questions surrounding fiat backing for stablecoins have led many to doubt the veracity of those behind stablecoins. However, the USD Coin is considered a safer option than Tether’s USDT for a few reasons. One of them is that USD Coin has not been involved in any legal battle with regulators; this contrasts with Tether, which is still currently sorting out its fiat reserves. Also, the Federal Deposit Insurance Commission (FDIC) has insured USD Coin accounts, which goes a long way to allay user fears about its service.

Like most stablecoins, crypto investors use USD Coins as a payment rail to access the crypto market. Fiat is converted to digital assets, which are then used to buy and sell other cryptocurrencies. Aside from this, the USD Coin is meant to offer the feature of stability that other cryptocurrencies lack. Digital assets like Bitcoin are highly volatile; they may gain 20% in a day and lose much more a few days later. Digital currencies like USD Coin stem this volatile tide while enabling users to gain reasonable interests in their assets. An obvious feature is the ease of transfer. USD Coin can move from one wallet or user to another within a split second. This is ideal for users who want to send money overseas as they will get instantaneous feedback instead of waiting hours or days.

USD Coin was made by the tech company Circle and is currently managed by a consortium called Center. The project is backed by Coinbase, which also supports its purchase, and Bitmain. The USD Coin has since climbed up the ranks of stablecoins and is now considered a viable alternative to the controversial USDT coin.

USD Coin works with the standard regulatory protocol. Interested users must complete a know-your-customer (KYC) process to use USD coin. After this process is complete, they can link their bank account and transfer US dollars to your USD Coin account. You can also transfer back your USD Coin to your regular bank account