Stablecoins 101: Behind crypto’s most popular asset
Stablecoins have quietly become a tour de force in the global cryptocurrency market, representing more than two-thirds of the trillions of dollars worth of cryptocurrency transactions recorded in recent months.
Unlike most cryptocurrencies, which can often be subject to dramatic price swings, stablecoins are pegged 1:1 to less volatile assets such as fiat currencies or commodities in order to maintain a consistent, predictable value.
Globally, stablecoins are gaining momentum as both a medium of exchange and a store of value, addressing gaps left by traditional currencies — particularly in regions with monetary instability and/or limited access to the U.S. dollar (USD). Businesses, financial institutions (FIs), and individuals…
