Fiat-pegged Stablecoin
A digital asset tied 1:1 to a fiat currency, like USD or EUR, for price stability.
What is Fiat-pegged Stablecoin?
Fiat-pegged stablecoins are digital assets designed to maintain a 1:1 value with a fiat currency, such as the USD (e.g., USDT, USDC) or EUR (e.g., Stasis Euro). Backed by reserves of cash or cash-equivalent assets, these stablecoins ensure price stability, making them suitable for trading, payments, and DeFi applications. Their widespread adoption stems from their ability to combine blockchain’s transparency and efficiency with the stability of traditional currencies, appealing to users in regions with volatile economies or limited banking access.
Related Terms
Convertible Notes
Hybrid debt securities convertible into equity, used by companies like Strategy to fund Bitcoin purchases at low interest.
Paradigm
Research-driven crypto venture firm investing in early-stage protocols, with open-source software contributions advancing blockchain infrastructure.
Collateral
Digital assets deposited by borrowers to secure loans in DeFi lending protocols.
Currency Sovereignty
A nation's control over its monetary policy and issuance in the digital era.
Gas (Ethereum)
A unit measuring the computational effort required to execute transactions or smart contracts on Ethereum.
Contract Resolution
The process of determining the outcome of a prediction market contract to distribute payouts based on the event’s result.