# USDC By [Untitled](https://paragraph.com/@0x08a9d8053ba478c3aa7987c813fb018d56305110) ยท 2023-04-01 --- USDC - The Stablecoin Backed by the US Dollar USDC, or the USD Coin, is a stablecoin pegged to the US dollar, which means that its value is always equal to $1. It is one of the most popular stablecoins in the market, and it is widely used in the cryptocurrency space for trading, lending, and other financial activities. The USDC was launched in September 2018 by Circle and Coinbase, two of the biggest players in the cryptocurrency industry. The stablecoin is an ERC-20 token, which means that it runs on the Ethereum blockchain. This makes it easy to use and transfer, as it can be stored in any Ethereum-compatible wallet. One of the main benefits of USDC is that it provides stability to the cryptocurrency market. While cryptocurrencies like Bitcoin and Ethereum are known for their volatility, USDC is designed to be a stable and reliable digital asset. This stability makes it an attractive option for those who want to use cryptocurrencies for everyday transactions, without worrying about price fluctuations. The USDC is backed by a reserve of US dollars, which means that for every USDC in circulation, there is an equivalent amount of US dollars held in reserve. This ensures that the value of USDC remains stable and that users can always redeem their USDC for US dollars at a 1:1 ratio. The reserve of US dollars is held in audited bank accounts, and Circle provides monthly reports on the reserve's holdings to ensure transparency and accountability. This gives users the confidence that the stablecoin is fully backed by US dollars and that there is no risk of a sudden drop in value. --- *Originally published on [Untitled](https://paragraph.com/@0x08a9d8053ba478c3aa7987c813fb018d56305110/usdc)*