USDC, or USD Coin, is a type of cryptocurrency that is known as a stablecoin. A stablecoin is a new class of cryptocurrencies that attempts to offer price stability by being pegged to a reserve of assets. USDC, specifically, is pegged to the US dollar on a 1:1 ratio. This means that for every USDC coin, there should be an equivalent real US dollar held in a reserve.
USDC was created by the cryptocurrency firm Centre, which was founded by the peer-to-peer payment technology company Circle and includes involvement from the cryptocurrency exchange Coinbase. USDC is an ERC-20 token, meaning it operates on the Ethereum blockchain.
The aim of USDC and other stablecoins is to combine the instant processing and security privileges of cryptocurrencies with the volatility-free stable valuations of fiat currencies. Since its value is pegged to the US dollar, it is not subject to the same level of volatility as other cryptocurrencies like Bitcoin or Ethereum. USDC can be used for a variety of purposes including trading, investing, and payments.