Stablecoin
MarketsDefinition
A cryptocurrency designed to maintain a 1:1 peg with a fiat currency (almost always the US dollar). Two main types: fiat-backed (USDC, USDT — reserves of cash + Treasuries; audited or claimed-to-be) and crypto-backed (DAI — overcollateralized by other crypto).
Total stablecoin market cap exceeds $200B as of 2025. Issuers (Tether, Circle) are now among the largest holders of US T-bills. The 2023 USDC depeg (during the Silicon Valley Bank failure, where Circle had reserves) was a brief reminder that 1:1 isn't guaranteed.
Total stablecoin market cap exceeds $200B as of 2025. Issuers (Tether, Circle) are now among the largest holders of US T-bills. The 2023 USDC depeg (during the Silicon Valley Bank failure, where Circle had reserves) was a brief reminder that 1:1 isn't guaranteed.