WHAT IS A STABLECOIN?
Stablecoins are digital tokens pegged to traditional currencies like the US dollar. Unlike volatile cryptocurrencies such as Bitcoin, stablecoins maintain a fixed exchange rate by backing each token with cash and shortterm government securities. USDC, issued by Circle, demonstrates the model: each token maintains a oneto-one ratio with the dollar. Payment providers use stablecoins to move money between parties without traditional banking infrastructure, settling transactions in seconds rather than days while cutting intermediary fees at each step of the process.