Insights
Explained: What are Stablecoins?
Jun 3, 2022
While cryptocurrencies are often highly volatile, stablecoins are pegged to another asset, most often the US dollar. They can maintain this peg in several ways, but the most common and safest manner is to back the coin with reserve assets, which can take several forms, such as fiat currencies, other cryptocurrencies, or commodities. It’s important that all investors have a nuanced understanding of this diverse asset class.