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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.
The stablecoin market cap has recently reached a new all-time high of $168 billion. This is without including algorithmic stablecoins. What really boggles the mind is USDT, Tether, alone represents $118 billion of that, which is well over 50 percen...
Soneium, the new and promising Layer-2 blockchain developed with the support of Sony, has reached a new significant milestone: the launch of the first stablecoin pegged to the Japanese yen. This initiative, promoted by Sony Bank, the financial arm of...
Stablecoins have become essential in the cryptocurrency world, offering the stability of traditional currencies along with the advantages of blockchain technology. As the crypto market grows, stable digital currency helps users and developers manage...
PayPal launched its stablecoin PYUSD launched in August last year. Originally launched as an ERC-20 token, PYUSD expanded to Solana's blockchain in May this year. PYUSD's growth is likely to continue as PayPal is heavily focused on regulatory compli...
Tether, the company that issued the stablecoin USDT, decided not to launch its own cryptocurrency network due to market saturation and strategic reasons. This is what the company's CEO, Paolo Ardoino, explained in an interview with Bloomberg News....
Coinbase, a leading global cryptocurrency exchange, has announced the integration of EURC, a stablecoin pegged to the euro issued by Circle. Starting August 28, Coinbase Advanced users will be able to instantly and fee-free convert their euros to EUR...
Tron network’s Decentralized USD (USDD) stablecoin, designed to maintain a 1:1 peg with the US dollar, has seen a significant change in its backing. Tron Reserve DAO, the entity in charge of managing the funds that back this stablecoin, withdrew 12,0...
Apple Integration Opens New Frontiers for Stablecoins Apple’s recent decision to open up its payment platforms to third-party developers has sparked a new wave of interest in the cryptocurrency industry. Among the most active companies in this direct...
After completing the development stage, Ripple, the company that issues XRP, has begun the testing phase of its stablecoin, Ripple USD (RLUSD). Initially RLUSD is in a private beta version, being tested on the XRP Ledger and Ethereum networks. Althou...
For years, Tether has been promising that its digital dollar, USDT, would be available on Bitcoin's Lightning Network. In 2019, Paolo Ardoino, who was then Tether's CTO (he is now the company's CEO), had assured that, no later than next year, USDT wo...
