USD Coin is compatible with several blockchains that support the ERC-20 standard or other compatible standards. The ERC-20 standard is a set of rules that define how tokens can be created, transferred and exchanged on the Ethereum blockchain. Other blockchains that support USDC have similar standards that allow USDC to function on their networks.
USD Coin is also backed by a mix of cash and short-term U.S. Treasury securities, which are held in segregated accounts with regulated U.S. financial institutions. These accounts are audited regularly by an independent accounting firm to ensure compliance and transparency.
How does USD Coin work?
USD Coin works by following a simple process:
- To create USDC, users need to deposit U.S. dollars or dollar-denominated assets with one of Centre’s authorized issuers, such as Coinbase or Circle. The issuer then mints an equivalent amount of USDC and sends it to the user’s wallet address.
- To use USDC, users can send and receive USDC across borders and platforms with minimal fees and delays. USDC can be used with various dApps and protocols that run on the compatible blockchains, such as decentralized finance (DeFi), gaming, e-commerce, remittances and more.
- To redeem USDC, users need to send USDC to one of Centre’s authorized issuers, who then burns the USDC and transfers the equivalent amount of U.S. dollars or dollar-denominated assets back to the user’s bank account.
What are the advantages of USD Coin’s technology?
Some of the advantages of USD Coin’s technology are:
- Stability: USD Coin maintains a stable value that mirrors the U.S. dollar, reducing the risk of losing money due to price changes and making USDC suitable for everyday transactions.
- Transparency: USD Coin provides a transparent system that allows anyone to verify the amount of USDC in circulation and the amount of reserve assets backing it through Centre’s website and monthly attestation reports.
- Security: USD Coin leverages the security features of blockchain technology, such as cryptography, consensus mechanisms and distributed networks, to ensure that USDC transactions are immutable, verifiable and censorship-resistant.
- Interoperability: USD Coin enables interoperability between different blockchains and dApps that support the ERC-20 standard or other compatible standards, allowing users to benefit from the different features and advantages of each blockchain, such as scalability, security and innovation.
USD Coin Market
What is the current market capitalization of USD Coin?
The market capitalization of USD Coin is the total value of all USDC coins in circulation. As of December 16, 2021, the market capitalization of USD Coin was $32,948,501,248, according to CoinMarketCap. This makes USD Coin the 10th largest cryptocurrency by market cap.
What is the trading volume of USD Coin?
The trading volume of USD Coin is the amount of USDC coins that are exchanged in a given period of time. As of December 16, 2021, the trading volume of USD Coin was $1,664,960,722 in the last 24 hours, according to CoinMarketCap. This means that there was a high level of activity and liquidity for USDC in the market.
What are the top exchanges that list USD Coin?
USD Coin is listed on over 200 exchanges, according to Centre’s website. Some of the top exchanges that list USD Coin are:
- Coinbase: Coinbase is one of the largest and most popular cryptocurrency exchanges in the world, offering a platform for buying, selling and storing various digital assets. Coinbase also co-founded USD Coin as part of the Centre consortium.
- Binance: Binance is another leading cryptocurrency exchange that offers a wide range of services and products for crypto users, such as trading, staking, lending and more. Binance also supports various blockchains and dApps that use USDC.
- Kraken: Kraken is a reputable cryptocurrency exchange that provides a secure and user-friendly platform for trading and investing in digital assets. Kraken also offers various features and tools for advanced traders, such as margin trading, futures and options.
- Huobi: Huobi is a global cryptocurrency exchange that offers a variety of services and products for crypto users, such as spot trading, derivatives trading, lending and more. Huobi also supports various blockchains and dApps that use USDC.
USD Coin Investment
Is USD Coin a good investment?
USD Coin is not designed to be an investment that generates returns or appreciates in value. USD Coin is designed to be a stable and transparent digital currency that enables fast, secure and low-cost global payments. Therefore, USD Coin is more suitable for users who want to use USDC as a medium of exchange, a store of value or a unit of account.
