There are many winding sounds about Stablecoins. So what are they, you must have some, and what should we protect if there is something?
First, let’s review what they are: Stablecoins is a blockchain -based token designed to act as a stable form. Their price is synchronized with predictable external assets such as stable calls. However, unlike the call or move slowly (physically or through bank electronic transactions), Stablecoins can be immediately transmitted or exchanged for tremendous digital assets.
Given the stable value, Stablecoins occupies a unique position in the encryption world, unlike more common cryptocurrency, it serves as a mediator with low value of digital assets and other traditional values.
And their role is an intermediary, but it can be held for a short period of time. So so many people and institutions have bought Stablecoin and sometimes hold onto them for a long time.
What is the most common use of Stablecoins?
There are many ways to use Smarkoin for people and institutions.
With the exchange mechanism between different types of values: Some people buy Stablecoin for a short time to support other transactions. For example, you may need to convert stablecoins when you move the Fiat currency by centralized exchange or in the centralized exchange, or if there is no direct exchange between two different types of cryptocurrencies. The huge market that uses Stablecoin as an exchange medium is international remittance.
As a store of wealth: Stablecoins provides more stable forms of wealth than to hold cash or volatile currencies (eg Argentina and turkey) in high -inflated countries.
Fluidly: Stablecoins provides financial fluidity that can be distributed as soon as it can be used to quickly participate in a defect or transaction for other cryptocurrencies when there is time when it takes time (without a slug).
As a loan collateral to avoid sales of encryption targets for taxation: By renting a stablecoin for encryption assets for Defi, the holder can avoid the tax results of the sale by using capital or consumption of some proceeds without selling encryption assets.
Investing in investing: yield: Stablecoins can be used to obtain yields (usually you need to “lock” the exchange or defect platform.)
Low risk hedge compared to other investments: Stablecoins can be used to reduce risk as part of a balanced digital portfolio.
Stable coin and investment risk
If you are considering investing in Stablecoin, remember:
- If the centralized exchange has the key to coins, the risk of third -party companies related to the company, security and financial health is applied. Understand how to manage the key.
- If you have your own key and invest in Defi, you will be risk of a related smart contract that acts in bugs, vulnerability or unexpected ways.
In particular, there is no risk of investment. Choose the level and risk level and shape of the situation.
How did Stablecoins evolve?
When Cryptocurrencies, such as Bitcoin, Ethereum and Altcoins, joined the financial field initially, extreme volatility made it highly risk and speculative. Most coins have a roller coaster price period! Stay Blemoin was introduced in a method of buffering its volatility.
But some twisting had to be solved first. Some initial attempts to build some early Stay Blemoin have failed. The price failed because the price was not as stable as the publisher planned. Specifically, AlgorithmThis is to maintain stable value based on mathematical algorithms, smart contracts and modeled market behavior.
for example, Algorithm Terra Wood failed magnificently in May 2022 due to the wrong family of algorithm design on market behavior on unexpected events. As a result of some failed algorithm Starble Lecomin, the algorithm Starble Lixin has lost its early popularity.
Modern
Most of today’s stabilization is supported by real assets (collateral) such as monetary, financial bonds, cryptocurrency (excessively correlated in buffer for volatility) or commodity baskets. Tangible assets do not trust the behavior of “pegging” algorithms, but improve confidence when backing up digital coins.
Transparency, maturity and regulatory acceptance all increase the use of Stablecoin. Today’s largest stable Starble Lecomin has made a leap and boundary to achieve each purpose. Reflecting this evolution, stablecoins are increasing in the hot chain transactions. More than half of all encryption transactions -As you can see from the next chart.
Serial analysis through claude.ai
Stablecoin success
Some of the US dollar stable Starble Lecosians of the publisher of the private company have mature and popular acceptance. Among them, if you go down to the market cap:
- USDT (“tether”) in tethers
- USDC (“USDC Coin”) at the Center Consortium (established by Circle and Coinbase)
- Pyusd (“paypalusd”) of PAXOS Trust Company
- RLUSD (“Ripple USD”), Ripple
As of the date of the publication of the article, Tether’s market capitalization has become closer to all cryptocurrency.
According to Dune and Artemis’s “Stablecoins” report, TETHER has a $ 140 billion market cap, with a market cap of $ 140 billion, with a market cap worth $ 140 billion in market cap, which has a market cap of $ 140 billion in market caps and a stablecoin leadership in a market cap and market penetration. Show it.
If you want a deep dive to the difference between USDT and USDC, we recommend the insightful comparison of Coin Bureau.
What financial institutions are issued or traded in Stablecoins?
Do you know that encryption exchange and stablecoin publishers must have a large amount of Stablecoin, but many other major financial institutions are moving to the use of Stablecoins? Organizations such as Visa, Bank of America and Revolut are using or controlled projects to issue and accept stablecoin selected as part of the service package and partnership. Even Fidelity investment is a test They own their own stability.
How is the United States dealing with stability?
In March 2025, the United States is experiencing sea changes in the stable coin appetite, which has announced new guidelines for banks to participate in encryption custody and specific stabble coin activities. and National Innovation Guide and Establishment for the United States in 2025 The broader range of stablecoin guidelines (“Genius Act”) is quickly approaching as a law. The US Treasury Secretary, SCOTT BESSENT, also announced plans to strengthen the dollar’s status as a dominant preliminary currency in the world by utilizing the STABLECOINs supported by the US Treasury bill.
The regulatory clarity of Stablecoins is rapidly generated, reducing the risk of all users.
How can I protect Stablecoin in digital wallets?
If you hold stablecoin in a digital wallet, it should be included safely. Wallet backup And an Inheritance plan Like other digital assets. Do not think about the possibility of interruption of wallet access or digital inheritance.
- If you can’t access your wallet, back up your wallet seed phrase to restore your wallet. Distributed digital safe is the most effective place to protect digital assets.
- Think about who are beneficiaries or beneficiaries of digital assets and plan digital inheritance.
- You can also choose to maintain the centralized Exchange password on the Vault12 Digital Vault and other related passwords. Digital vaults are safer than standard password managers.
“Plan failure will fail.” -Benjamin Franklin
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