USD Coin (USDC) is a stablecoin that was launched in 2018. It is a digital currency that is designed to maintain a stable value relative to the U.S. dollar. The value of USDC is pegged to the U.S. dollar on a 1:1 basis, meaning that 1 USDC is intended to always be worth 1 U.S. dollar.

USDC is an ERC-20 token that operates on the Ethereum blockchain, which means it benefits from the security and efficiency of the Ethereum network. The token is issued by regulated financial institutions and is backed by a reserve of U.S. dollars held in bank accounts. The reserve is regularly audited to ensure transparency and to verify that the number of USDC tokens in circulation matches the amount of U.S. dollars held in reserve.

The primary purpose of USDC is to facilitate fast and low-cost digital transactions, both within the cryptocurrency ecosystem and in broader financial markets. It can be used for various applications, such as remittances, online commerce, decentralized finance (DeFi), and as a stable store of value.

USDC has gained popularity in the cryptocurrency industry and is supported by numerous cryptocurrency exchanges and wallets. It provides a reliable way for users to move funds between different platforms without relying on traditional banking systems. Additionally, USDC has gained attention as a useful tool for traders and investors to mitigate volatility by quickly converting their holdings into a stable asset.

It's important to note that while USDC aims to maintain a stable value, there may be slight deviations from the exact 1:1 peg due to factors such as transaction fees and market demand. However, these deviations are typically minimal and temporary, allowing USDC to maintain its stability relative to the U.S. dollar.