USDC – everything you need to know about cryptocurrency


General information

USDC is a stablecoin or stablecoin is a cryptocurrency based on a physical currency paired with the (actually issued) US dollar. Usdc cryptocurrency works in several blockchain networks – from: Ethereum to Stellar and Solana. This was announced on May 15, 2018. The project was officially launched only in September of the same year.
The project is managed by the Center consortium formed by Circle and Coinbase. Circle received $270 million in ICO funding from investors including Accel Partners, Bitmain, Blockchain Capital, Breyer Capital, CICC Alpha, China Everbright Bank, Digital Currency Group, General Catalyst, IDG Capital and Pantera. The company provides various ready-made applications and programs for integrating financial services, and also guarantees a fiat reserve in real US dollars.

What are the advantages of the project

  1. Ease of transactions. Two parties that have a crypto wallet on the Ethereum platform can make transactions in usd coins in seconds, no matter what time of day or night they do it and where they are.
    This means that even if someone has to send a large payment to a supplier overseas, the payment will be delivered within seconds and the process will be as easy as buying something from an ecommerce store. On the contrary, a standard bank or telegraphic transfer can take 1 to 3 days.
  2. Using a stablecoin like this takes the worry out of currency fluctuations as the US dollar stays stable. There are huge fees for regular cross-border payments. With USDC, the only fee to worry about is the fee to operate the Ethereum network. And this is a fraction of a percent. In addition, the commission does not change, which makes it especially attractive for large payments.
  3. Compatibility with mobile applications such as dApps
    Crypto decentralized applications based on blockchains and exchanges have flourished over the past few years. Since USDC is an ERC-20 token, any application that accepts this standard will accept USDC. This allows holders of coin usd to buy a wide range of crypto assets up to NFT tokens.
  4. The owner of USDC tokens has the opportunity to receive a high percentage income if he invests his assets in platforms such as Compound (crypto-farming). This makes crypto tokens more profitable than holding fiat currency in a bank on deposit with almost zero rates.
  5. Transparency and security. Circle, which issues the USDC stablecoin, has partnered with the Coinbase platform to fully implement the project. In addition, transactions are audited by the audit company Grant Thornton LLP. The involvement of two reputable companies and the audit of a leading accounting firm ensure the transparency of the firm’s operations.
    Summarizing what has been said in this article, one should understand not only what a stablecoin pegged to the dollar or another currency is, but also how it works.Knowing how these types of cryptocurrencies work will help a trader or investor choose the right approach in their trading strategy and avoid unnecessary costs when making transactions between cryptocurrencies for various purposes.

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