USDC is the first implementation of CENTRE's fiat-back stablecoin network, launched as an ERC-20 compliant token on Ethereum. USDC ensures that reserve assets match circulating tokens through a proof-of-reserves system.

CENTRE contracts handle the minting, redemption, and burning of stablecoins, enabling exchange and wallet interoperability. Customers can transfer fiat funds into a CENTRE issuer's account through a stablecoin on-ramp. The issuer then executes commands with the CENTRE network to verify, mint, and validate fiat tokens pegged to the deposited funds. Customers can transfer these tokens elsewhere for use. Redemption involves burning fiat tokens when a customer visits a licensed CENTRE issuing member's off-ramp web application. Upon successful verification and validation, funds from underlying fiat reserves are transferred to the customer's external bank.

Why use USDC?

Circle Company issues USDC with the following objectives:

• Bring transparency: The source code of USDC is open, allowing public disclosure and auditing of issuance and USDC amounts by leading auditing firms. Transparency builds trust, a crucial factor for stablecoins' long-term stability.
• Bring high liquidity: USDC is backed 1:1 by the US Dollar. Circle, valued at 3 billion USD and licensed by the New York Stock Exchange (NYSE), provides a strong foundation for the token to withstand market volatility and thrive in the crypto space. Investors can convert USD to USDC and vice versa at a 1:1 ratio, subject to Circle's KYC/AML process. Circle ensures that the USDC rate remains stable around 1 USD, offering a reliable store of value for investors.
• Build credibility: The familiarity and reputation of the Circle brand make USDC more widely accepted.

USDC functions similarly to US dollars, allowing it to be spent in various ways. The only limitation is that it cannot be physically folded and carried in a pocket.

Here are some typical uses of USDC:

• Buy cryptocurrencies: USDC can be traded for other cryptocurrencies on multiple platforms. However, trading for other stablecoins may be subject to exchange rate fluctuations.
• Make online purchases: USDC offers privacy as transactions on DEX are verified by smart contracts, serving as payment receipts for expense tracking. Major corporations like Amazon, Microsoft, Visa, Tesla, and more accept USDC for commercial purchases.
• Earn interests: Similar to regular dollars, USDC can be placed in earning programs offered by exchanges, allowing passive gains without worrying about depreciation.