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Summary of USD Coin (USDC)
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Definition:
USDC is a stablecoin pegged to the U.S. dollar on a 1:1 basis, backed by $1 in reserve. -
Launch:
September 2018 (initially limited basis) -
Use cases:
- Safe haven for crypto traders in times of volatility
- Business payments in digital assets
- Decentralized finance and gaming
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Goal:
Create an ecosystem where USDC is widely accepted. -
Founders:
Introducing USD Coin Bridged: A New Era of Stablecoin Innovation
What Is USD Coin (USDC)? USD Coin, denoted by its ticker symbol USDC, is a stablecoin that maintains a 1:1 parity with the U.S. dollar. Each unit of this cryptocurrency in circulation is fully collateralized by a corresponding $1 reserve, comprising a mix of cash and short-term U.S. Treasury bonds. According to the Centre consortium, the entity behind this asset, USDC is issued by regulated financial institutions.
The USD Coin stablecoin was initially introduced on a limited scale in September 2018. At its core, the stablecoin’s philosophy is centered around the concept of “digital money for the digital age,” catering to a world where cashless transactions are increasingly becoming the norm.
Several use cases have been unveiled for the USD Coin, which is poised to offer a safe haven for crypto traders during periods of market turbulence. Moreover, the stablecoin’s proponents assert that it can also facilitate businesses in accepting digital asset payments, thereby disrupting a multitude of sectors, including decentralized finance and gaming, among others.
Ultimately, the objective is to establish a comprehensive ecosystem where USDC is universally accepted across a vast array of wallets, exchanges, service providers, and decentralized applications (dApps).
The Founders of USD Coin: The Centre Consortium boasts two esteemed founding members, namely Circle, a pioneering peer-to-peer payment services company, and Coinbase, a prominent cryptocurrency exchange. This consortium remains open to welcoming other crypto ventures.
Circle co-founders Jeremy Allaire and Sean Neville eloquently articulated the vision behind USDC, stating: “We envision an open internet of value exchange that can profoundly transform and integrate the world, ultimately dissolving artificial economic borders and giving rise to a more efficient and inclusive global marketplace that connects every individual on the planet.”
In 2020, Circle and Coinbase jointly unveiled a significant overhaul of USDC’s protocol and smart contract. The primary objective of these enhancements is to facilitate the seamless integration of USD Coin into daily payment transactions, e-commerce, and peer-to-peer exchanges.