Stablecoins are a type of digital currency designed to maintain a stable value relative to a specific asset, typically a traditional fiat currency like the US dollar. They aim to reduce the price volatility often associated with cryptocurrencies like Bitcoin and Ethereum, making them potentially more suitable for everyday transactions and as a store of value for short periods.
Examples include Tether (USDT) and USD Coin (USDC).
The recently passed GENIUS Act has created the first federal regulatory framework for stablecoins, and major corporations are reportedly considering launching their own forms of the currency.
The total market for stablecoins pegged to the US dollar is near record highs, at around $270 billion.
