What is Circle's USDC stablecoin backed by?

Circle's USDC stablecoin is backed by a reserve of assets that are held in segregated accounts, such as cash and short-term U.S. Treasury bonds. These assets are held by regulated financial institutions and are subject to regular attestations by independent auditors to verify that the number of USDC tokens in circulation is fully backed by the reserve of assets.

Circle has stated that the USDC token is designed to be transparent, auditable, and accountable. The company has also stated that it is committed to complying with all applicable laws and regulations related to stablecoins and other cryptocurrencies.

Overall, while USDC is designed to maintain a stable value relative to the U.S. dollar, it is still subject to regulatory and market risks. Investors and users should be aware of these risks and should carefully consider the regulatory and legal landscape surrounding stablecoins before investing or using them.