Cryptocurrencies, like Bitcoin (BTC -1.91%), have become a hot topic on Wall Street since their introduction. At first seen as a novelty, crypto use has expanded, and the crypto model has shifted in important ways. Today, so-called stablecoins appear to offer investors and businesses a new tool to support global operations. The European Central Bank (ECB), meanwhile, is working on its own alternative. Here’s what you need to know.

Cutting out all the middlemen

One of the main features of cryptocurrencies is that they aren’t backed by countries, as are fiat currencies. Moreover, cryptocurrencies like Bitcoin trade hands between individual crypto users, so you don’t even need to use a bank to facilitate transactions. This represents a…