USD Coin is a type of digital currency known as a stablecoin, which is designed to maintain a stable value by being pegged to the U.S. dollar. Each USD Coin is backed by one U.S. dollar held in reserve, making it easier for users to transact without the volatility often associated with other cryptocurrencies like Bitcoin. Launched in 2018 by Circle and Coinbase, USD Coin is widely used for trading, remittances, and as a means of transferring value in the digital economy. It operates on various blockchain networks, ensuring transparency and security in transactions.