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.


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4 Feb 2026 8 minute read 0 comments Cloudy12

Big news just dropped, and it changes everything people thought they knew about crypto payments. Nearly 4 in 10 U.S. merchants now accept cryptocurrency at checkout. Not someday. Not in a pilot program. Right now. And the numbers behind this shift ar...

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31 Jan 2026 3 minute read 5 comments Cloudy12

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29 Jan 2026 2 minute read 0 comments CryptoTrendSeer

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28 Jan 2026 3 minute read 0 comments FKlivestolearn

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27 Jan 2026 1 minute read 2 comments Nas.A

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The Yen Shock, the Dollar Squeeze, and the Stablecoin Endgame

26 Jan 2026 7 minute read 5 comments Heath Muchena

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25 Jan 2026 1 minute read 0 comments DanMalam

A consortium of 10 European banks has established a company called Qivalis to launch a euro-pegged stablecoin, according to an announcement from the group. The initiative aims to provide an alternative to U.S. dollar-dominated digital payment systems...

Circle CEO Rejects Bank Run Fears Over Stablecoin Yields Amid Regulatory Tensions

22 Jan 2026 1 minute read 2 comments DanMalam

Circle CEO Jeremy Allaire rejected banking industry claims that stablecoin yields threaten deposit stability, citing money market fund precedent as transaction volumes reached $33 trillion in 2025 amid legislative tensions.   Circle CEO Jeremy Allair...

CLARITY Act stalls over stablecoin yield debate and other unresolved issues

17 Jan 2026 1 minute read 0 comments Great White Snark

As some of you may know, I get the Gemini weekly newsletter. Yesterday, I received one that started with this post's title. Here's what the blog post on Gemini's site had to report: CLARITY Act stalls over stablecoin yield debate, other unresolved i...

BNY Mellon Launches Tokenized Deposits: What It Means for Crypto

14 Jan 2026 1 minute read 0 comments CryptoTrendSeer

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