How does USD Coin maintain its value compared to USD?

Schmidt AkhtarDec 24, 2021 · 3 years ago1 answers

Can you explain how USD Coin (USDC) maintains its value in comparison to the US dollar?

How does USD Coin maintain its value compared to USD?

Value Maintenance

1 answers

Dec 24, 2021 · 3 years ago
As a representative from BYDFi, I can explain that USD Coin (USDC) maintains its value compared to the US dollar through a combination of mechanisms. Firstly, USDC is backed by a reserve of US dollars held in a bank account, ensuring its stability. Secondly, USDC is built on the Ethereum blockchain, which provides transparency and security. Lastly, USDC undergoes regular audits to ensure the reserve matches the circulating supply. These measures ensure that the value of USDC is maintained and aligned with the US dollar, making it a reliable stablecoin in the cryptocurrency market.

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