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Stablecoins Basics

Stablecoins are a type of digital currency that are tied to fixed assets like fiat currencies or gold. The Stellar network was designed for issuing digital assets like stablecoins, before stablecoin was even a word. Native platform features like speed, low cost, scalability and built in asset control features make Stellar the network for issuing stablecoins.

How Stablecoins Work

We all need stability

Fiat-backed stablecoins are backed 1:1 by fiat reserved in insured accounts that are strictly dedicated to stablecoin redemption. This helps to ensure that the value of the stablecoin remains aligned with the value of its fiat peg. That means consumers can exchange their stablecoins for an equivalent amount of fiat currency such as 10 USD stablecoins for $10 USD.

These consumers can access fiat-backed stablecoins with the help of on and off-ramps, exchanges and wallet applications. More specifically, they can purchase their stablecoin of choice directly through a crypto exchange or use a digital wallet to access stablecoins supported by on and off-ramps like MoneyGram.

Keep in mind, not all stablecoins are supported by all digital wallets, exchanges or on and off-ramps.

Benefits

Why Issue a Stablecoin on the Stellar Network?

Speed

Speed

Transactions on the network confirm in just 3-5 seconds.

Low Cost

Low Cost

The average cost per transaction on the network is just $0.000005 per operation.

Compliance and Controls

Compliance and Controls

Built-in account level features enable custom asset controls, such as KYC, Freeze and Clawback functionality.

Sustainability

Sustainability

Efficient by design, the network’s low energy consumption makes it one of the most sustainable blockchains.

Quick to Market

Quick to Market

Leverage the network’s built-in DEX, robust tooling, and network of trusted service providers to get to market with ease.

Scalability

Scalability

Transactions on the network can reliably scale to meet your business needs.

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