stablecoin

thumb|alt=An over-the-counter stablecoin exchange|An Over-the-counter (finance)|over-the-counter stablecoin exchange in [[Hong Kong]]

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~29 min read

Article

48 sections

Contents

Background
Types of stablecoin
Fiat-backed stablecoins
Cryptocurrency-backed
Commodity-backed stablecoins
Algorithmic stablecoin
Uses of stablecoins
Convenience for cryptocurrency users
Cross-border payments
Currency substitution
Aid distribution
Policy and regulatory issues
Money laundering and terrorism financing
Erosion of monetary sovereignty
Sanction avoidance
Financial risks and stability concerns
De-pegging risk
Contagion risk on financial market
Counterparty risk
Solvency risk
Technology risk
Lack of reserve transparency
Fragmentation of liquidity
"Death spiral" of algorithmic stablecoin
Comparison between Stablecoin and CBDC
Stablecoin and interest return
Yield provided by cryptoasset service providers
Yield farming in decentralized platform
Legislation and regulation
Armenia
Australia
Bahrain
Canada
China
European Union
Hong Kong
Japan
Singapore
South Korea
UAE
United Kingdom
United States of America
Stablecoins and US Treasuries
State of Wyoming
Defunct stablecoin projects
De-pegged stablecoins
Abandoned stablecoin projects
References

thumb|alt=An over-the-counter stablecoin exchange|An Over-the-counter (finance)|over-the-counter stablecoin exchange in [[Hong Kong]]

A stablecoin is a type of cryptocurrency that aims to maintain a stable value relative to a specified asset, a pool or basket of assets. The specified asset might refer to fiat currency, commodity, or other cryptocurrencies. Despite the name, stablecoins are not necessarily stable. Stablecoins rely on stabilization tools such as reserve assets or algorithms that match supply and demand to try to maintain a stable value.