Fiat-backed Stablecoins

These are the most common type of stablecoins, backed by reserves of fiat currencies like the U.S. dollar or euro held in a custodial account. The reserves act as collateral to maintain a 1:1 peg with the fiat currency.

What You Need To Know

Examples of current stablecoins include Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and Paxos Standard (PAX).