How does USDC work?

Could you elaborate on the workings of USDC, please? I'm particularly interested in understanding its underlying mechanisms and how it manages to maintain its stability. Is it backed by fiat currencies or other assets? And how does it ensure that its value remains pegged to the US dollar? I've heard that it's a fully collateralized stablecoin, but I'd like to know more about the specifics of its collateralization process. Additionally, could you discuss its role in the crypto ecosystem and how it differs from other stablecoins? I'm also curious about the regulatory framework surrounding USDC and whether it's subject to any particular regulatory oversight. Thank you for your insights!