The implementation of the USDС representation mechanism contains several logical parts:
- The issuing and redemption process
- The peg maintenance and stabilization processes
THE ISSUING PROCESS
Circle issues USDC on all supported blockchains using the token smart contracts. Such smart contracts contain issuance and redemption functions, all belonging to the contract ownership.
These functions are utilizable by Circle to mint USDC, burn USDC, blacklist addresses, and remove them from the blacklist. The native USDC is issued on various blockchain networks.
THE PEG MAINTENANCE AND STABILIZATION
Circle maintains the peg of USDC using its collateral reserves.