Stablecoins: key words

A crypto-asset that aims to keep a stable value against a set asset, such as the US dollar, or a basket of assets. Source

The fixed value a stablecoin aims to keep, such as one US dollar per token. Source

The assets an issuer holds to back the stablecoins it has issued, such as cash and short-term Treasury bills. Source

Handing stablecoins back to the issuer in exchange for dollars or other assets. The issuer then destroys (burns) the tokens. Source

Minting creates new tokens when someone pays in; burning destroys tokens when they are redeemed. Source

An accountant's check of one claim, such as 'reserves are at least equal to the tokens', at a set date. Source

An independent check of a company's full financial statements for a period, such as a year. Source

Backed by collateral worth more than the stablecoins issued, as a buffer against falling prices. Source

The collateral-to-debt ratio below which a vault can be liquidated. Source

Selling a vault's collateral, usually by auction, to repay its stablecoin debt and a penalty. Source

A stablecoin that holds few or no reserve assets and tries to keep its peg with rules that change its supply. Source

When a stablecoin's market price moves away from its peg, for example a dollar stablecoin trading at 90 cents. Source

A self-reinforcing wave of redemptions and forced sales of reserve assets. Source

The GENIUS Act's term for a digital asset used for payment, whose issuer must redeem it for a fixed amount of money. Source

Under EU law, a crypto-asset that aims to keep a stable value by referencing one official currency. Source

Under EU law, a crypto-asset that aims to keep a stable value by referencing another value, right or mix of them, and is not an e-money token. Source