USD Coin Price

USD Coin (USDC) is the second most popularly used stablecoin pegged to the US dollar. It gives all the benefits of cryptocurrency without worrying about high volatility due to its peg and is issued by regulated financial institutions.

The Circle consortium created USDC to combine innovation in the digital currency space with the traditional financial industry worldwide. Circle, the firm behind the creation of the USD Coin, is a global fintech firm that has partnered with leading blockchain networks to grow the adoption of its stablecoin.

The USDC price remains pegged to that of the US dollar, thanks to dollar reserves maintained by Circle. Circle maintains the peg, keeping the USD Coin price steady, as it holds an equal amount of US dollars in reserve as the number of USDC tokens in circulation. The firm holds the reserves in a combination of cash and short-term US Treasury bonds.

Some leading blockchains partnered with Circle and offer native support for the USDC coin include Ethereum, Solana, Algorand, Stellar, and Avalanche. On Ethereum, USDC functions as an ERC-20 token while it works as an ASA token on Algorand and an SPL token on the Solana network.

The USDC stablecoin has been developed to function on Circle’s open-source fiat stablecoin framework. The Circle consortium includes members from Circle and Coinbase and is tasked with the management of the USD Coin price, circulating supply, and other aspects.

Businesses looking to accept USDC as a payment option can do so with the integration of Circle’s APIs. These support card payments, wire transfers, ACH transfers, and more methods where consumers can leverage the convenience of blockchain-powered USDC instead of fiat currency.

The USDC stablecoin offers the stability of fiat currencies but the technical prowess of digital currencies, including decentralization, enables faster and more convenient cross-border digital transactions. USD Coin is the second largest stablecoin by market cap and trading volume, after Tether (USDT).

The Circle consortium continues to add to their dollar reserves as the amount of USDC in circulation goes up to maintain USD Coin price stability and keep it pegged to the USD. Due to this move, the USDC value remains relatively constant irrespective of the volatility and unpredictability of the broader crypto market.

Circle leverages the help of a leading accounting firm to ensure complete transparency in the operations. The accounting firm is responsible for verifying that the reserves held by the consortium match the USDC's circulating supply to keep the USD Coin price as close to that of the US dollar. This gives USDC the added benefit of achieving regulatory compliance and making it a far more reliable stablecoin than several of its peers.

The fiat-collateralized stablecoin USD Coin backed by regulated financial institutions was launched in October 2018 by the Centre consortium in partnership between Circle and Coinbase. The Centre consortium envisioned the USDC as a fully collateralized, price-stable digital asset that can be used more conveniently than fiat currency.

The Centre consortium wanted to offer a product that stood apart from cryptocurrencies, was considered a low-risk investment, and was convenient to convert from fiat currency. In addition, they focused on ensuring transparency by providing a governing framework for better regulation of their product, the USD Coin.

With this in mind, USDC shares a public report discussing the details of Centre’s fiat currency reserves every month. It also lays out clear guidelines for issuing and redeeming USDC for its members and partners.

Each member of the Centre consortium has to abide by stringent rules surrounding the licensing, compliance, accounting, and custody of fiat reserves. This has worked in USDC’s favor as it has never been caught in regulatory crosshairs.