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Stablecoin Track Record and Its Impact on Asset Quality
Stablecoins differ from other cryptocurrencies in that their price is “fixed” from inception. Unlike cryptocurrencies like Bitcoin and Ether, whose value is determined by supply and demand, stablecoins are pegged to a fiat asset, like the US dollar. That said, stablecoin pricing isn’t really that simple. While stablecoin values are pegged to that of a fiat asset, the market does play a role, allowing the price to vary above and below that point based on various market conditions. And, the track record of a stablecoin — or how closely and well it maintains that peg — is a critical factor that can impact ... (full story)