One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions.
The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies.
Stablecoin design takes many different forms, each with its own tradeoffs:
- Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX).
- Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD.
- Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
An oracle vulnerability on Binance contributed to Friday’s market crash, which clocked in as the largest liquidation event in history at $19 B. In this article, Cointelegraph Research analyses newly released forensic orderbook data from the crash.
Brazil’s BRLV stablecoin gives institutions a compliant way to access the country’s high bond yields amid growing global demand for real-world assets.
S&P Global Ratings and Chainlink have partnered to provide onchain stablecoin risk profiles for TradFi players looking to enter or expand into the $300 billion market.
JPMorgan executive Scott Lucas confirms crypto trading services are in development, but his firm is hesitant to handle crypto custody at the moment.
Solana DEXs dominate volume through memecoins but lack liquidity depth for sustainable growth. Bitcoin and stablecoins offer resilience beyond speculation.
ETH price sharply recovered as market fears eased and derivatives stabilized, suggesting that a return to $4,500 could be Ether’s next stop.
Ethena founder Guy Young said the USDe depegging event on Binance that sent the token to $0.65 was an isolated issue not tied to fundamentals.
Bitcoin’s $16,700 drop on Friday triggered $5B in futures liquidations, exposing a fragile market structure and renewed volatility despite this year’s spot BTC ETF-driven optimism.
Bitcoin struggled to regain momentum as traders were cautious, gold hit record highs and US-China trade tensions fueled a broader market sell-off.
An $11 billion Bitcoin whale returned to crypto markets this week, likely seeking trading opportunities tied to October’s historic crypto rallies and uncertainty in the US.
The group of banks said the stablecoin initiative would explore the “benefits of digital assets” in bringing new products to the market.
The move marks the debut of Nasdaq’s first Tether Gold-backed corporate treasury, which will be established via a $150 million financing round.
A new integration allows South Africans to spend Bitcoin, stablecoins and other crypto directly at more than 650,000 merchants nationwide.
The change in rhetoric followed a US dollar-pegged stablecoin boom in 2025 due to the passage of key legislation in the United States.
As part of its cooperation with Bahrain Fintech Bay, Ripple aims to bring its custody solution and RLUSD stablecoin to Bahrain’s financial institutions.
