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Fiat-backed stablecoin
Crypto News
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Fiat-backed stablecoin is a stablecoin designed to track the value of a government-issued currency through reserves held by an issuer. A U.S. dollar fiat-backed stablecoin aims to stay close to one U.S. dollar by using cash, Treasury bills, or similar reserve assets. The issuer is responsible for managing token creation, redemption, reserve reporting, and circulation. Fiat-backed stablecoins are different from crypto-backed stablecoins and algorithmic stablecoins, which use different mechanisms to maintain a target price.
USDC is a fiat-backed stablecoin designed to track the U.S. dollar. A user can hold USDC on Ethereum or use it in supported trading and DeFi applications.