Commodity-pegged Stablecoin
A digital asset tied to the value of physical commodities like gold or silver.
What is Commodity-pegged Stablecoin?
Commodity-pegged stablecoins are digital assets backed by tangible assets like gold or silver, offering stability and exposure to commodity markets without physical ownership. Examples include PAX Gold (PAXG) and Tether Gold (XAUT), where each token represents a specific quantity of gold (e.g., one troy ounce) stored in secure vaults. These stablecoins appeal to investors seeking a hedge against inflation or currency volatility, combining blockchain’s transparency with the intrinsic value of commodities, and are used in trading and wealth preservation.
Related Terms
MAS Stablecoin Framework (Singapore)
Singapore's regulatory framework by the Monetary Authority of Singapore for single-currency stablecoins pegged to SGD or G10 currencies, emphasizing value stability and consumer protection.
Bid Side
The section of an order book listing all open buy orders, sorted from highest to lowest price.
Arbitrage
The practice of buying a digital asset on one exchange and selling it on another to profit from price differences.
ATH
The highest price a digital asset has ever reached in its trading history.
Base Chain
Coinbase's Ethereum Layer 2 network built on the OP Stack, optimized for on-chain applications and developer accessibility.
Bitcoin Core
Bitcoin Core is the primary software client for running a Bitcoin full node, validating transactions, and contributing to the network’s proof-of-work consensus.