USDC, which stands for USD Coin, is a stablecoin that is pegged to the US dollar on a 1:1 ratio. This stability is maintained by the company behind USDC, Centre Consortium, by ensuring that they hold enough US dollars in reserve to back each USDC token in circulation. This means that for every USDC token issued, there is an equivalent amount of US dollars held in reserve, making it stable and maintaining its value.
