USD Coin (USDC) is a type of stablecoin, which is a cryptocurrency designed to maintain a stable value relative to a specific asset or currency. In the case of USD Coin, the aim is to have a stable value relative to the US dollar.

USDC was launched in 2018 as a joint project by Circle and Coinbase, two well-known cryptocurrency companies. It is an ERC-20 token built on the Ethereum blockchain, meaning it follows the technical standards and protocols established for tokens on the Ethereum network.

The primary purpose of USD Coin is to provide a digital representation of the US dollar that can be used in various cryptocurrency applications and platforms. It serves as a bridge between traditional finance and the digital asset space, enabling users to easily move funds between the two.

The value of USD Coin is pegged to the US dollar on a one-to-one basis, meaning that one USDC token should always be redeemable for one US dollar. This stability is achieved through a combination of transparency, regular audits, and maintaining a reserve of dollars that matches the total supply of USDC tokens in circulation.

USD Coin has gained popularity among cryptocurrency traders, investors, and businesses due to its stability and the transparency of its issuing companies. It can be used for various purposes, such as making fast and low-cost cross-border payments, providing liquidity on cryptocurrency exchanges, and as a store of value during times of market volatility.

It's important to note that while USD Coin provides stability relative to the US dollar, it is still a cryptocurrency and subject to the inherent risks and volatility associated with the broader cryptocurrency market. Additionally, there are other stablecoins in existence, each with its own characteristics and issuers.