June 28, 2021
USDC YouHodler

Understanding the USD Coin

USD Coin, or USDC, is one of the various stablecoins now in circulation that’s value is tethered to the US dollar. It was first introduced in September 2018, as a joint effort between Coinbase and Circle. It is one of the most popular stable coins on the market alongside Tether (USDT) and TrueUSD (TUSD).

Stablecoins were created to tokenize fiat currencies such as the US dollar so that they can be easily used on a blockchain network or the internet. You can easily convert your fiat currency into USDC, invest and convert your earnings back to fiat currency at any time. USDC utilizes the ERC-20 smart contract to facilitate redeeming of your USDC coins.

Moving fiat currencies to another country or financial jurisdiction globally has always been a challenge, but now with stablecoins such as USDC, it is no longer such a big problem. It can be done in seconds, and investors will not be worried about any loss of value. Additionally, you can buy USDC coin tokens, invest them and earn interest on them. In this article, we look at what you need to know about the USD coin.

What is USDC?

The development of USDC is a joint effort between Circle, a finance company specializing in crypto, and Coinbase — one of the world’s top crypto exchanges. The value of the USDC coin is set as a ratio of 1:1 to the US dollar. Unlike many cryptocurrencies, which are very volatile, stablecoins such as USDC are not. Their stability is something that has long been lacking in the cryptocurrency market.

This development comes when investments such as bank deposits are not as lucrative as they used to be. You can now buy USDC tokens and earn returns of rates of up to 12% per annum, which is now better compared to bank deposits. The good news is that you can earn interest on USD coin crypto savings account that accumulates interest. And the best thing is that you can withdraw your coins at your convenience.

How does USDC work?

USDC has not created its blockchain network but can be found on bitcoin’s script on the Omni Layer. It can also be found on Ethereum’s blockchain as an ERC-20 smart contract token. You can deposit your USDC coins into your YouHodler wallet, which utilizes both options, making it easier to earn interest.

Due to the current challenging economic conditions, bank deposits will only earn you a meager 0.5% APR. On the other hand, you can get over 12% APR with USDC when you deposit your coins in wallets such as YouHodler. Furthermore, after you create an account and verify your details, you can link your wallet to your account, making depositing or redeeming USDC coins easier.

Is USD coin safe?

USD coin poses less risk to investors as it does not experience the colossal price volatility of other digital currencies. Additionally, if you deposit your USDC coin in wallets like YouHodler, you are guaranteed maximum security for your assets. YouHodler utilizes storage industry best practices in efforts to keep customers’ investments safe. The coins are stored in both hot and cold wallets, which helps in providing maximum protection.

Why the USD Coin?

USDC is not the only stable coin in the market nor is it the most popular one. Tether is the most popular, but it has been subjected to great scrutiny over the status of its finances. The coin lacks transparency, which has paved the way for other stablecoins such as USDC that embrace transparency. USDC is not only fast, but it is also audited and regulated.


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