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USDC, symbol $USDC, also called USD Coin, is a US dollar based stablecoin created by a consortium called CENTRE, formed by Circle and Coinbase, that is transferred inside various blockchains such as Ethereum.
A stablecoin is an ERC-20 token inside a blockchain that is pegged to a national or fiat currency such as the US dollar, in the case of $USDC.
The token is convertible into real US dollars that the firm Circle holds in traditional investments.
How does USDC work?
1. Businesses and exchanges open KYC accounts at Circle and send US dollars to the company’s bank account.
2. When the company receives the US dollars, then it issues (mints) USDC tokens, worth 1 to 1 to the dollar, and sends them to the blockchain address of its customers.
3. As the issued USDC tokens are the ERC-20 standard tokens in blockchains as Ethereum, individuals, merchants, and traders can use them to make payments, transfers, and to trade other tokens or NFTs.
4. Businesses and exchanges redeem USDC by sending them to Circle’s address on the blockchain.
5. When Circle receives the tokens, they redeem or destroy the tokens from circulation and send the equivalent amount of US dollars to their customer’s bank account.
Does Emerald support USDC?
Yes, Emerald supports several stablecoins, including USDC.
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