Convert USDC to TRY

Pegged to the value of the US Dollar (USD), USDC is a stablecoin that is supported by assets.

One US dollar in fiat currency or a liquid asset, such as short-term US Treasury bonds held by US financial institutions subject to US regulation, is required to support each USDC token in circulation. With its adoption of the ERC-20 token standard, USDC is now compatible with all apps built on the Ethereum platform. Several other well-known blockchains currently support the coin, such as Tron, Algorand, and Solana.

In times of market instability, cryptocurrency traders have found USDC to be a safe haven due to its predictable price. More efficiently than in traditional finance, USDC allows for the cross-border transfer of value in a stable digital currency.

The vast network of USDC holders and service providers, including crypto trading platforms and decentralized apps (dApps), highlights the value of USDC.

What is USD Coin (USDC)

Launched in late 2018, USDC is designed to maintain a stable value unlike other typically volatile cryptocurrencies. But even stablecoins such as USDC can still be prone to mild changes in price.

USDC’s price spiked to an all-time high of $1.19 in May 2019, and noted an all-time low of $0.891848 in May 2021. Changes to supply and demand is the main reason stablecoins move off their $1 peg. During bullish market cycles, demand for stable value assets like USDC drops. That causes the price of USDC and other U.S. dollar-backed stablecoins to fall beneath one dollar. Overall, though, USD coin has maintained long periods of stability at $1.

There is no maximum or total supply of USD coin, as new tokens are issued based on demand.

When a user redeems USDC for $1, the team burns (permanently removes) the appropriate amount of USD coin from circulation, and funds from underlying reserves are transferred to the client’s external bank.

How Does USDC Work?

There is no mining mechanism to add more USDC to circulation, unlike Bitcoin and other cryptocurrencies. In its place, fresh USDC coins are created whenever individuals or companies fund their Circle accounts with US government-backed cash. By trading USD for USDC, one can build a 1:1 replica of that asset whose transaction records are stored and maintained using the efficiency of blockchain technology.

In contrast, USDC tokens are burnt when USD is deposited in order to maintain a constant ratio of tokens in circulation to fiat currency reserves.

Circle keeps the value of USDC tied to the value of USD by holding the equivalent amount of USD in cash and short-term U.S. Treasuries at the time of issuance. This means that USDC is less susceptible to price swings during economic downturns than other cryptocurrencies.

Even in the face of tremendous market volatility, Circle’s peg to the US dollar has remained stable thanks to the one-for-one cash holdings that support its token.

Dollar State Capital (USDC) has lately asserted that it had solely assets backed by the government, while having held modest quantities of commercial paper in the past. This sort of short-term debt is issued by firms to satisfy their more immediate responsibilities.

International accounting powerhouse Grant Thornton audits Circle’s holdings as part of the company’s registration as a money service corporation in the United States.

How to Tokenize US Dollar into USD Coin?

1.A user sends US dollars to the coin issuer’s bank account.

2.The issuer uses a USD Coin smart contract to create the equivalent amount of USD Coin.

3.The newly minted USD Coins are sent to the user and the substituted US dollars are held in a reserve.

The redemption of USD Coins for US Dollars follows the process listed above but in reverse.