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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.
China may launch a CNH-pegged stablecoin in Hong Kong, testing trust, surveillance, and dollar dominance in the digital era. The conversation around digital currencies has taken yet another intriguing turn. Recent reports from Reuters suggest that Ch...
You know, it’s kind of wild how money itself is being reinvented right before our eyes. On one side, you have stablecoins, these digital tokens that promise the stability of traditional money but move with the speed and freedom of crypto. On the othe...
The concept of U.S. states moving into stablecoins once seemed far-fetched, yet in 2025, Wyoming has set a precedent. At a basic level, the $100 cost for a Wyoming LLC feels like standard legal fare, but when paired with FRNT allocation at a preferen...
Japan to release 1st Stablecoin I must admit I was not initially intrigued when I heard about Japan releasing their first stablecoin. Then later that day when I actually read the story, I saw it would be released on Avalanche, well I got interest...
Shorting the Ethena (ENA) token at around 68 cents right now is like making a risky wager against a bank that only holds about 9% in reserves while chaos swirls all around. The situation with ENA is complicated but very interesting because of how...
Wyoming (WY) Launches First State-Backed Stablecoin on Seven Blockchains Back in 2022 I wrote about how Wyoming anticipated releasing the USA's first state stablecoin, that came about from Legislation being drafted called Wyoming Stable Token Act (...
The true value of stablecoins isn’t about whether they temporarily move above the peg. It’s about what they can actually do that a physical dollar cannot. A stablecoin is built to hold its peg at $1. That’s the point. One token equals one dollar in v...
Freelancers pay no payroll taxes (yes, of course), but hidden fees eat into your income. Find out how to beat them with smart tools.Want to know how to avoid it? With a little intelligence. If you’re a freelancer, digital nomad, or remote worker, you...
In a rapid and unexpected development, some of the largest stablecoin issuers have transformed themselves into builders of blockchain infrastructure. Companies like Circle, Stripe, and Tether are moving beyond simply issuing digital currencies. They...
Western Europe is undergoing a rapid transformation in digital payments, driven by the growing dominance of stablecoins. With Chainalysis’ latest 2024 report revealing that stablecoins now account for a significant share of the region’s $1.2 billion...
