A stablecoin is a cryptocurrency whose price in fiat currency aims to be stable.
Such a cryptocurrency can achieve its stability by different mechanisms: collateralizationCollateralizationWhen an asset is backed by another asset, which therefore means that its value derives from the other asset. For example, the stablecoin USDT is collateralized by US Dollars detained in vaults. of each stablecoin with fiat currency or a basket of assets, algorithms, etc.
Since 2024, in the European Union, the MiCA Regulation has created categories of cryptocurrency that resembles what a stablecoin can be: Asset-Referenced Tokens (ARTs) and Electronic Money Tokens (EMTs).
The most famous stablecoins are Tether (USDT), USD Coin (USDC) and MakerDAO (DAI).
