USD Coin (USDC) is a stablecoin that is pegged to the US dollar (USD) on a 1:1 basis, meaning each USDC token is backed by an equivalent amount of USD held in reserve. Launched in 2018, USDC was created by the CENTRE Consortium, a collaboration between Circle and Coinbase, two prominent companies in the cryptocurrency industry.

Similar to other stablecoins, the primary purpose of USDC is to provide a digital equivalent of traditional fiat currency that can be used within the cryptocurrency ecosystem while maintaining a stable value. This stability makes USDC suitable for various use cases, such as trading, hedging against market volatility, and facilitating cross-border transactions without the need for intermediaries.

Initially issued as an ERC-20 token on the Ethereum blockchain, USDC has expanded to other blockchains, including Algorand, Stellar, and Solana. Its compatibility with Ethereum's ecosystem allows for easy integration with decentralized finance (DeFi) applications and smart contracts.

USD Coin has gained a reputation for its transparency and regulatory compliance. The USDC reserves are regularly audited by independent accounting firms, providing a higher level of trust and confidence in the stablecoin. This has contributed to its growing adoption and popularity, making USDC one of the leading stablecoins in the market.