# USDC on Arbitrum

<div align="left"><figure><img src="https://1977014524-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MizTi8sOUBD2-LN0_Ru%2Fuploads%2FkIZI3TQ5YAApcntjLb5X%2Fusdc.png?alt=media&#x26;token=4036ead1-81e0-4fe8-9f23-4fbb349ad305" alt="" width="102"><figcaption></figcaption></figure></div>

**Auto Allocation - USDC**

WETH sent to an Amasa account which has setup Swap to USDC in Auto Allocation, automatically enters a set of smart contracts and is swapped via decentralized exchange ( Uniswap ).

The percentage of WETH swapped to USDC will match the set percentage chosen by the user in their Auto Allocation.

As part of the same transaction executed by the smart contracts, the user wallet address which was connected to setup the Amasa account will be sent the USDC.

This asset is then held by, and under the control of the user, not the smart contracts or Amasa.

When rebalancing a portfolio, a user can swap existing assets back to WETH from their dashboard and deposit into their updated Auto Allocation. This may be done if a user wants to change their approach from Stabilise to Amplify or vice versa.

Users can independently confirm and track all transactions on Arbiscan.

**Risk Disclaimer**

The DeFi space is not without risk. While we have done our best to select optimal investments, it is best to do your own research and only supply assets you can afford to lose. [Read Risk Disclaimer](https://app.gitbook.com/o/zP8RI8jLJ4a0uU5k3lyR/s/-MizTi8sOUBD2-LN0_Ru/~/changes/39/disclaimer)

**What is USDC?**

USD Coin (USDC) is a digital stablecoin pegged to the United States dollar, issued by a private entity and managed by the Centre Consortium. [Stablecoins](https://www.investopedia.com/terms/s/stablecoin.asp) are commonly backed by[reserve assets](https://www.investopedia.com/terms/r/reserve-assets.asp)like dollars or euros to achieve price stability. USD Coin (USDC) is a fiat-collateralized stablecoin, meaning that USDC tokens are collateralized by fiat money like U.S. dollars. Other types of stablecoins include those that are collateralized by a cryptocurrency, an algorithm, or by a hybrid approach.

USDC is primarily available as an Ethereum ERC-20 token.

Fractions of USD Coin can be owned, in the same way U.S dollars fractionalize into pennies. You can purchase as little as 0.001—equal to one-tenth of a cent—of USD Coin.

USDC should not be confused with a central bank digital currency (CBDC). USDC is issued by Circle, a company in the private sector, while a CBDC would be issued by a government.

The Centre consortium was founded by Circle and includes members from Coinbase and Bitmain, an investor in Circle. Circle is regulated as a licensed money transmitter under U.S. state law, similar to PayPal, Stripe and Apple Pay. The financial statements of Circle are audited annually and are subject to review by the SEC.

Circle claims that each USDC is backed by a dollar held in reserve or short-dated U.S. treasuries, and these reserves are held in the custody of leading financial institutions, however, these are not detailed. USDC reserves are regularly attested (but not audited) by Grant Thornton, LLP, and the monthly attestations can be found on the Centre Consortium's website.

[View more information](https://www.circle.com/en/usdc)

[View the whitepaper](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)
