Stablecoins are a type of cryptocurrency which maintains a stable value by being pegged to a reserve asset, like fiat currencies like USD, commodities and other cryptos.
Unlike volatile cryptos, stablecoins aim to minimise price fluctuations. This usability makes them suitable for fast and cheap cross-border payments, DeFi integration, hedge against inflation, easier crypto trading, payments, and remittances. Key examples of stablecoins are Tether (USDT), USD Coin (USDC), Binance USD (BUSD), DAI, PAX Gold (PAXG), FRAX, among others.
With increasing global regulatory clarity, stablecoins are evolving from crypto trading tools to essential solutions that bring efficiency and programmability to payments, disbursements, and remittances.
