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A stablecoin is a digital token that is pegged to a certain value, usually in a 1:1 ratio with a fiat currency like the US dollar. For example, the USD Coin (USDC) launched by Coinbase is backed by US Dollars in a 1:1 ratio. Most stablecoins in reality deviate from the $1 position ever so slightly, 

Most stablecoins are pegged to a fiat currency, with the US Dollar being a popular choice. However, some stablecoin ventures distinguish themselves by backing their stablecoins with other assets. 

An example of this kind of stablecoin is the well known MakerDAO ecosystem, which is a stablecoin ecosystem that consists of two tokens: the stablecoin DAI and the governance/utility token MKR. The stablecoins are backed by Collateralized Debt Positions which demand Ether as collateral. There is a complex mechanism in place to ensure that the token does not deviate from the $1 value.

Stablecoins have been ascending in popularity in discussion in 2019. This is largely because there is some consensus in the idea that stablecoins are effective in combating the volatility of the market. Since the value of these tokens remain stable, investors who use stablecoins do not have to worry as much about bear markets, and can use these tokens to make investments during these bear markets to gain profit.

As most stablecoins are pegged to fiat currency, there has been scrutiny on the finances of stablecoin issuers, who must confirm that they possess the reserves to back the total value of stablecoins. This increased scrutiny has led to calls for more audits and better transparency.

PSA — Weigh Out Your Risks before entering into that high yield vault

22 hours ago 4 minute read 1 comment Messin' With Cryptos

Hey folks, so if you’ve been following my articles for a while, you’ll know that I have a strong affinity and interest to find high yield plays, whether they be in stablecoins or in blue chip cryptocurriencies. Today I’m going to be taking up the cou...

Binance Partners with MUFG to Develop Stablecoins in Japan

27 Sep 2023 1 minute read 0 comments Yugocean

     Japanese arm of Binance and Japan's largest financial group, Mitsubishi UFJ Financial Group (MUFG), have jointly announced plans to create stablecoins. Stablecoin Friendly Regulation Created the Partnership      Japanese regulations are more c...

Changes in the stablecoin market

26 Sep 2023 1 minute read 0 comments Stormgain

Stablecoin market capitalisation has decreased for the 18th month in a row, declining to $124 billion. This is the lowest it's been since September 2021. The share in the total volume of coins also continues to decline, reaching 11.6% of the crypto m...

Will Stablecoins Be Banned in Europe?

22 Sep 2023 1 minute read 2 comments Cryptofab

I've been seeing a lot of headlines and social media posts about MiCA, the EU's Markets in Crypto Assets regulation, and how it could ban stablecoins in Europe. I'm not sure what to believe, so I'm writing this post to try to figure it out. From what...

KuCoin Supports PayPal's PYUSD/USDT Trading

22 Sep 2023 1 minute read 10 comments KuCoin Blog

You want it, we got it! As demanded by the global KuCoin community, we are excited to announce our latest among crypto gems - the PayPal USD (USD) stablecoin. We have opened the trading of PYUSD/USDT on our spot market as the interest around PayPal’s...

House Financial Service Ranking Member Maxine Waters Crypto History

21 Sep 2023 3 minute read 0 comments Cje95

Maxine Waters is the Democratic Ranking Member of the House Financial Services Committee. This Committee has been in the headlines a lot in the last few months because of the crypto legislation that they have been pushing through with bipartisan supp...

Explaining MakerDAO Acronyms: DSR, TRFM, and PSM

18 Sep 2023 4 minute read 0 comments Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 50+ reports (including this one) and complete industry-leading ana...

Update on Crypto Legislation on Capitol Hill

17 Sep 2023 2 minute read 1 comment Cje95

An update on where crypto legislation stands on Capitol Hill. This week has been the first time that the House of Representatives has been in session since the House Financial Services passed through a ton of various bipartisan GOOD crypto legislatio...

On stability of stablecoins

12 Sep 2023 5 minute read 0 comments fmiren

  Introduction Stablecoins are crypto assets whose value is pegged to the value of another financial asset which can be a fiat currency, a commodity or another cryptocurrency among others. Designed to have a stable price relative to the reference ass...

VISA increase it´s stablecoin use, could send ripples over the entire crypto industry

9 Sep 2023 3 minute read 11 comments Patch

VISA is exploring USDC on the Solana network, let us see if we can learn why and what impact it might have for the future. USDC on Solana and why VISA is looking to adopt a stablecoin Most likely exploring USDC, or any stable coin for that matter, i...