Stablecoin

A crypto token designed to hold a fixed value, usually one US dollar, typically backed by cash and short-term government debt.

• The issuer holds reserves, mostly bank deposits and US Treasury bills, and redeems each token for $1 for approved customers.
• Tokens move like other crypto, globally in seconds and around the clock, making them the main dollar rail for crypto trading and cross-border payments.
• Issuers keep the interest on reserves while holders usually get none, which at rates near 4% makes large issuers very profitable.
• Supply passed $250 billion in 2025, when the US GENIUS Act set reserve rules; unbacked 'algorithmic' TerraUSD collapsed in 2022.