USDC, a stablecoin issued by Circle, is designed to be always redeemable 1:1 for US dollars, backed by fully reserved assets primarily consisting of short-dated US Treasuries and cash. Circle emphasizes the importance of strong risk management and liquidity to protect consumers and foster trust, highlighting the risks inherent in financial institutions that offer borrowing and lending services. Circle operates under US state money transmission laws, ensuring regulatory oversight. The company maintains a transparent operation by managing its USDC reserves with conservative investments, avoiding high-risk or less liquid assets, and plans to expand its transparency by providing more liquidity and redemption analyses on its website. Over the past year, Circle has redeemed substantial amounts of USDC for dollars, illustrating the stablecoin's reliability and the company's commitment to maintaining its status as a trusted digital currency.