Digital dollars are stablecoins, a type of cryptocurrency that can be exchanged 1:1 for US dollars. In order to maintain it's peg, stablecoins like USDC and USDT are backed 1:1 with USD assets held in treasury—this means that every digital dollar of USDC can always be exchanged 1:1 for cash.

What are stablecoins?

Stablecoins bridge the worlds of cryptocurrency and everyday fiat currency because their prices are pegged to a reserve asset like the U.S. dollar or gold. This dramatically reduces volatility compared to something like Bitcoin and results in a form of digital money that is better suited to everything from day-to-day commerce to making transfers between exchanges.

The combination of traditional-asset stability with digital-asset flexibility has proven to be a wildly popular idea. Trillions of dollars in value have flowed into stablecoins like USD Coin (USDC) as they’ve become some of the most popular ways to store and trade value in the crypto ecosystem.

How they work

Stablecoins are free from the volatility of non-pegged cryptocurrencies like Bitcoin, while inheriting some of their most best properties:

USDC is based on the open source fiat stablecoin framework developed by CENTRE. USDC provides detailed financial and operational transparency, operates within the regulated framework of US money transmission laws, and is reinforced by established banking partners and auditors.

Why choose USDC

At Sinbad, fostering the highest level of financial security and safety is core to our mission. USDC is Sinbad’s US dollar representative token for a few reasons:

Other popular stablecoins like USDT (USD Tether) and BUSD (Binance USD) do not have the same level of trust since both have faced transparency issues: