Stablecoin

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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.


Stablecoin Market Grows for 20th Straight Month Amid Bitcoin’s All-Time High

31 May 2025 3 minute read 0 comments FKlivestolearn

May 2025 marks a historic chapter in crypto history as stablecoins extend their dominance, Tether crosses $150B, and USD1 redefines political finance in the digital age.  The stablecoin market's performance in May 2025 represents more than just numer...

BlackRock Plans to Acquire 10% of Circle IPO Shares

30 May 2025 1 minute read 0 comments Keith Thuerk

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Circle’s IPO: Liquidity, Strategy, And The Next Phase Of Digital Finance

29 May 2025 3 minute read 0 comments Myxoplixx

Circle Internet Group, the company behind the USDC stablecoin, has launched one of the most anticipated initial public offerings (IPO) of 2025, with shares priced between $24.00 and $26.00 and a potential valuation around $6 billion. What makes this...

Stablecoin Tsunami: Why This Liquidity Wave Could Rock Crypto Markets

28 May 2025 1 minute read 2 comments Myxoplixx

In the next three days, the crypto markets are bracing for a seismic shift as $5 billion in stablecoins, roughly 2% of the entire stablecoin supply, floods into circulation. This isn’t just a technical blip; it’s a macro liquidity event with the powe...

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Latest Crypto News: Texas Bitcoin Bill, Kraken 24/7 Stock Trading, and Banks’ Stablecoin Plan

27 May 2025 9 minute read 2 comments StealthEX

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What Is a Stablecoin and Why Does It Matter in 2025?

26 May 2025 14 minute read 0 comments CryptoCopyBiker

Stablecoins in 2025 are no longer just a tool to send money thru exchanges. Forget it. They're the financial backbone of Web3. Designed to maintain a stable value, usually pegged to fiat like the US dollar, stablecoins now power DeFi, cross-border pa...

Tether, The Silent Juggernaut

24 May 2025 1 minute read 2 comments Myxoplixx

Tether has quietly built a position in U.S. Treasury bills that now exceeds the combined holdings of Germany, Spain, and Australia, making it roughly the nineteenth-largest holder of U.S. debt in the world. By parking over one hundred twenty billion...

$USD1 Just Got Listed on Binance and I Still Wouldn’t Touch It With a Ledger

23 May 2025 1 minute read 3 comments Cryptonator`s

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The Hidden Risk for Crypto Apps in Argentina: New Tax Rules That Could Hurt User Growth

21 May 2025 5 minute read 0 comments CryptoCopyBiker

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