Stablecoins are a type of cryptocurrency the main property of which is to maintain a stable price of the asset. Unlike popular cryptocurrencies like, which can often display high volatility, stablecoins are pegged to more stable underlying assets which may include fiat currencies like theIn trading, stablecoins are typically used as quote assets in trading pairs and serve as a tool for preserving the fiat value of trades, eliminating the need to cash out.
"The top five stablecoins collectively held more U.S. Treasuries than some G20 nations like South Korea and Germany. As a result, the growth of stablecoins provides a new source of demand for U.S. debt and aids in liquidity provisioning for the U.S. Treasury market, making stablecoins a net positive for the broader financial system," noted Bitwise’s Analysts Juan Leon and Ari Bookman in their recent report.