> For the complete documentation index, see [llms.txt](https://modus-3.gitbook.io/modus-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://modus-3.gitbook.io/modus-docs/overview/stablecoin.md).

# Stablecoin

Cryptocurrencies in general are renowned to be rather volatile therefore, to make transactions more predictable, the Modus dApp will handle project token acquisition and returns in the stablecoin $USDC. Each $USDC is backed by cash, equivalents, and short-duration U.S. treasuries, so that it is always redeemable on a 1:1 basis for US dollars. $USDC  is simply a digital dollar and is therefore pegged to USD. Consequently, making it as volatile as the US dollar itself. In addition, by virtue of being ERC tokens on the Ethereum blockchain, $USDC inherits Ethereum’s KECCAK-256 encryption making all transactions secure and transparent.  

<figure><img src="/files/B5UTy2nHNNn86w3wUzt2" alt="" width="375"><figcaption></figcaption></figure>

### Reliability of $USDC

Although there are other stablecoins available on the Ethereum blockchain, $USDC has been chosen because it is issued by the regulated financial institution Circle, sponsored by the publicly listed exchange Coinbase, and governed by Centre, a membership-based consortium that sets technical, policy and financial standards for stablecoins.&#x20;

<figure><img src="/files/7dTJdJDln9ZTePvV361L" alt="" width="512"><figcaption></figcaption></figure>

Besides, it is  being adopted rapidly across the industry by hundreds of companies and quickly becoming  the largest stablecoin industry ecosystem in the world. Just as $USDC is creating value for  the entire blockchain ecosystem, it will help do the same for Modus.&#x20;