In the ever-evolving world of cryptocurrency, stablecoins play a critical role in providing a reliable store of value. Among these, USDC (USDC) stands out as a trusted and transparent digital dollar. Whether you're looking to hedge against your local currency, move funds quickly, or earn yield, USDC offers a compelling option. 

In this beginner's guide, we'll explore what USDC is, how it works, and why it's becoming an increasingly popular choice for investors worldwide.

What is USDC?

USDC is a type of cryptocurrency known as a stablecoin.

Unlike volatile crypto assets like Bitcoin (BTC) or Ethereum (ETH), stablecoins are pegged to the value of a fiat currency – in this case, the U.S. dollar. Each USDC is designed to always be worth $1.00, offering stability in an otherwise turbulent market.

As of 2025, USDC is one of the most widely adopted stablecoins globally, with billions in circulation and integrations across a wide range of crypto platforms, wallets, and DeFi applications.

Who Created USDC?

USDC was launched in 2018 by Centre, a consortium founded by the crypto exchange Coinbase and fintech company Circle. The goal of Centre was to create a transparent, fully-reserved stablecoin that could be trusted by both retail and institutional users.

Circle, the main operator behind USDC, is a regulated fintech company headquartered in the United States. The company regularly publishes attestations from third-party auditors to confirm that each USDC is backed 1:1 by cash and short-term U.S. Treasuries held in segregated accounts.

How Does USDC Work?

USDC operates on several leading blockchains, including Ethereum (ETH), Solana (SOL), Polygon (POL), Aptos (APT) and many others. 

When you purchase USDC, a fiat dollar is deposited into a reserve account at Circle and a corresponding USDC token is minted. When you redeem USDC, the token is burned and the equivalent fiat dollar is returned to you.

This on-chain mechanism ensures transparency and traceability, as all USDC transactions are recorded on public blockchains. 

Why Does USDC Have Value?

USDC's value comes from its collateral backing and regulatory transparency. 

Each USDC is backed by an equivalent amount of U.S. dollars or short-term government securities. This backing, combined with regular third-party audits, assures users that the tokens they hold can always be redeemed for real dollars.

In addition to being fully backed, USDC benefits from strong institutional partnerships and widespread adoption in both centralised and decentralised finance ecosystems. This trust and utility help reinforce its stability and liquidity.

What is USDC's Advantage Over Other Stablecoins?

While there are other stablecoins like USD Tether (USDT) and Binance USD (BUSD), USDC is often seen as the gold standard for transparency and compliance. 

Unlike some competitors, Circle discloses the composition of its reserves and undergoes regular audits.

Furthermore, USDC is issued by a regulated U.S. company, which reduces counterparty risk and enhances its appeal for institutional investors. Its broad compatibility with DeFi protocols and centralised platforms also makes it one of the most versatile stablecoins available.

Why Would I Buy USDC?

USDC serves multiple strategic purposes for investors:

• A Safe-Haven in USD: During periods of market volatility or geopolitical uncertainty, investors often move funds into USDC to preserve value in U.S. dollars.
  
  
• A Hedge Against Local Currency Depreciation: For investors outside the U.S., such as those in South Africa, USDC offers a hedge against currency devaluation. With the rand's historical instability and a devaluation of over 5% a year, converting to USDC can protect purchasing power by this 5% per year.
  
  
• Ease of Use: Sending and receiving USDC is as simple as using an email address or QR code. With 24/7 availability and low transaction costs, it's a practical tool for modern finance.

Where Can I Buy USDC?

Buying USDC is fast, secure, and fully accessible on Altify. You can easily purchase, hold, and invest in USDC using fiat currencies like ZAR, USD, or from other cryptocurrencies. As one of the most trusted and regulated stablecoins, USDC is a reliable digital dollar for anyone seeking price stability, cross-border transfers, or a USD-denominated hedge. Whether you're protecting your portfolio or investing in DeFi, USDC is a strong, stable choice.