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Stablecoin

August 22, 2026 · Aditya Gupta

Crypto & Blockchain

A stablecoin is a cryptocurrency designed to maintain a stable value, typically pegged 1:1 to a fiat currency like the US dollar. Major stablecoins: USDT (Tether), USDC (Circle), DAI (decentralized, MakerDAO). Used as on-ramps to crypto, trading pairs, DeFi collateral, cross-border payments, and dollar exposure in unstable economies. Backing types: fiat-collateralized (USDC, USDT), crypto-collateralized (DAI), algorithmic (largely failed — UST collapse 2022 wiped out $40B). Critical to crypto market functioning; combined stablecoin market cap exceeds $150B. Regulatory scrutiny increasing — proposed Genius Act creates US framework for issuer requirements.

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