USD Coin (USDC) is a type of cryptocurrency that is known as a stablecoin. It was introduced in 2018 as a joint venture between Circle, a financial technology company, and Coinbase, a cryptocurrency exchange. The primary purpose of stablecoins like USDC is to provide stability and minimize the price volatility often associated with other cryptocurrencies like Bitcoin or Ethereum.

USDC is designed to be pegged to the value of the United States dollar (USD) on a one-to-one basis. This means that for every USDC token in circulation, there should be an equivalent amount of USD held in reserve. The reserve is regularly audited by accounting firms to ensure transparency and verify the backing of the tokens.

As a stablecoin, USDC serves as a digital representation of traditional fiat currency, offering a more stable store of value and a medium of exchange in the cryptocurrency ecosystem. It aims to provide the benefits of cryptocurrencies, such as fast and low-cost transactions, while minimizing the risks associated with price volatility.

USDC operates on the Ethereum blockchain, following the ERC-20 token standard. This allows for easy integration with decentralized applications (DApps) and platforms that support ERC-20 tokens. Since its launch, USDC has gained significant adoption and is widely supported by various cryptocurrency exchanges, wallets, and platforms.

The use cases for USDC include facilitating fast and low-cost cross-border transactions, serving as a stable store of value, enabling programmable payments and smart contracts, and providing liquidity in decentralized finance (DeFi) protocols.

It's important to note that while USDC is backed by a reserve of USD, it is not the same as traditional money held in a bank account. It operates on the blockchain and offers the benefits and characteristics of cryptocurrencies. However, its stability is derived from its backing by USD reserves.