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What is a stablecoin?

A stablecoin is a token designed to track a reference value, often a currency such as the US dollar. Its market price and redemption value depend on the issuer, reserves and mechanism.

What should I understand before using it?

Stablecoins can move on supported blockchains, including outside banking hours. Network fees, issuer restrictions and the availability of redemption services still matter. A target of one dollar is not a guarantee that a token can always be sold or redeemed for one dollar.

Read more in Wally’s RWA Textbook →