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.


Reasons for USDT's Relative Depreciation Compared to USDC ...

27 Jan 2026 1 minute read 2 comments Nas.A

  In the cryptocurrency ecosystem, stablecoins serve as a safe haven for investors by providing price stability. While the two most common stablecoins, USDT (Tether) and USDC (USD Coin), are theoretically pegged to $1, in practice they can experience...

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

26 Jan 2026 7 minute read 5 comments Heath Muchena

Japan’s bond-market air pocket is not “Japan breaking,” it’s the world discovering what happens when the cheapest funding source on Earth (yen) stops being free, at the exact moment the U.S. is trying to export fewer dollars. Something important just...

European banks set to launch Euro stablecoin

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

BNY Mellon's blockchain deposit platform with Ripple and Circle marks a turning point in institutional crypto infrastructure. Here's why it matters. BNY Mellon Launches Tokenized Deposits BNY Mellon, a 240-year-old Wall Street institution managing $...

World Liberty Launches Lending App — and Applies for a Bank License

12 Jan 2026 1 minute read 0 comments CryptoTrendSeer

World Liberty Financial rolled out its lending WebApp as USD1 supply hits $3.5B. But the real story might be their push for a U.S. bank license. World Liberty Launches Lending App as USD1 Hits $3.5B Supply World Liberty Financial launched its WebApp...

When JPMorgan Shrugs and Regional Banks Panic

11 Jan 2026 1 minute read 0 comments CryptoTrendSeer

JPMorgan downplays stablecoin risks while smaller banks flag $6.6T in exposure. The split reveals who's really vulnerable in crypto's next phase. JPMorgan recently came out saying stablecoins don't pose a meaningful threat to the banking system. Aro...

RWA Stablecoin Wars 2026: USDY vs BUIDL vs sUSDe vs fUSDC — Which Wins Yields? 💰🚀

8 Jan 2026 1 minute read 0 comments RWAGuru

RWA TVL ~$17B early 2026 (DefiLlama/rwa.xyz), and tokenized stablecoins are the backbone of the sector 🔥. USDY (Ondo), BUIDL (BlackRock), sUSDe (Ethena), fUSDC (Flux) dominate — all backed by real-world treasuries/credit, offering 4-10% base yields...

Idiosyncratic of Stablecoins like USDT and USDC

8 Jan 2026 1 minute read 2 comments YoussoufDelve

A stablecoin is a type of digital token designed to maintain a stable value based on an underlying pegged asset. These assets can include fiat currency, precious metals, commodities, or a combination of these (e.g. a basket of fiat currencies). The p...