What is USD Coin (USDC)?

What is USD Coin (USDC)?

What is USDC and how is it different from other stablecoins?

USDC is one of the most popular stablecoins, but how many people would actually know the story behind this coin? Let us, Bitkub Academy, take on a little adventure into the world of the well-recognized stablecoin, USDC!

What is USD Coin (USDC)?

USD Coin (USDC) is an ERC-20 standard token created through smart contracts within the Ethereum network for the purpose of being a low volatility coin or stablecoin that is pegged with the U.S. dollar in a ratio of 1:1 and can be used in numerous ways, whether it’s the exchange of goods and services in the real world or within decentralized applications (dApps).


USDC was created in 2018 by a collaboration between Circle and Coinbase on behalf of the Center Consortium in the form of a stablecoin. issued by a regulated financial institution. 

Interesting Technology

Stablecoins that have a value pegged to any asset need to have a reserve of that type of asset in order to be available for exchange when the owner needs it, in which USDC has a reserve of the dollar in its treasury and is regularly audited for transparency by Grant Thornton LLP, one of the largest accounting firms in the world, every month.

In addition to pegging the U.S. dollar (Fiat-Collateralized) to USDC, there are also other stablecoins that are pegged to different asset classes, such as cryptocurrencies (Crypto Collateralized), commodities (Commodities Collateralized), and value retention through smart contracts, or also known as Algorithmic Stablecoin.

If an investor wants to avoid the possible price fluctuations of 20% per day or more, which is normal for investing in digital assets, exchanging cryptocurrencies such as Bitcoin and other alternative coins (Altcoin) to USDC can be a suitable option.

Interesting Points of USDC

USDC is a stablecoin or cryptocurrency with low price volatility. This is a feature that can attract investors who prefer low-risk investments. As a result, new investors can easily understand, which can be a gateway to the cryptocurrencies world in the future.

Integrating with blockchain networks is not only limited to Ethereum, as a result it allows USDC to reach a larger number of users, as many can use USDC in decentralized applications (dApps) or to transact within other networks, namely Algorand, Solana, Stellar, or Tron.

USDC can be used to invest by users or investors in a decentralized financial system (DeFi), within networks that support USDC in order to choose the best platform for themselves.

Moreover, transactions with USDC can be much safer, more convenient, faster and without intermediaries, which allows users to transfer money to anyone, anywhere in the world. The requirement is an internet connection. In addition, the system functions 24/7.

USDC is considered a trustworthy stablecoin by many groups of investors, while also being accepted and is the second largest stablecoin in the world according to total market value of about 32.5 billion US dollars, next to Tether.

In reference to statistics from Coinmarketcap on October 21, 2021, USDC is ranked as the 10th highest in terms of market capitalization, with around 32.4 billion U.S. dollars or around 1.08 trillion baht. USDC’s supply is at 32,462,669,175 USDC and once made an all-time high at 37.22 baht and is hovering around the price of 33.40 baht at the time of writing.


USDC has been one of the most popular stablecoins in the past few years and has become another stablecoin that is being used on various platforms. USDC is different from other stablecoin as it is audited on a monthly basis and the results are reported through their website as well. This directly displays the transparency of USDC, in regards to how it is pegged with the U.S. dollars which are kept in the company's treasury.


Circle, Coinbase, Decrypt, Centre


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