A crypto asset that is pegged (see currLency peg) to a real world currency such as the dollar or euro. Stablecoins may be issued on multiple blockchain.

Stablecoins may be leverage against their deposits where the total value in circulation does not equal the assets held on behalf of customers. Such stablecoins are known as unbacked stablecoins.

Since stablecoins are outside the regulatory perimeter, these assets are often used as a place to park winnings from crypto trading to avoid taxation.

See also DeFi, staking and liquidity pool.


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