USD Coin (USDC) is a collateralized stablecoin.
1 USDC is equivalent to 1 USD. How is this possible? By means of collateral.
Each USDC in circulation is backed by dollars and other financial assets deposited in a bank account, which ensures stability to its price and allows users to have a cryptocurrency that behaves similarly to bitcoin and ether in terms of simplicity of moving funds and storage, but without the need to worry about volatility. 1 USDC is always going to be worth 1 USD.
Within the stablecoin family, USDC falls into the centralized stablecoin type. Behind the development of USDC are the companies Circle and Coinbase, which manage and audit the reserves and undergo regular audits to make the process transparent. In this way, people can have a digital asset tied to the US dollar, with use cases that grow daily.
In addition to USDC, there are other popular stablecoins, such as DAI and USDT.
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