One major problem in the digital asset space is volatility. Asset prices fluctuate 20%, 30%, 40% or more in a given week; and investors need a way to quickly exit when markets get choppy. At the dawn of the industry, it was hard for digital asset companies to get access to traditional financial infrastructure. This meant that selling digital assets into the most stable asset today–the US dollar– was challenging. The solution? Stablecoins, which gave traders a way to move quickly in and out of digital asset positions without needing to move into actual US dollars. They provide all the stability of the dollar without requiring the trader to exit the blockchain based ecosystem. Today, the total amount of value held in stablecoins is just over
29 - Fiat backed stablecoins
29 - Fiat backed stablecoins
29 - Fiat backed stablecoins
One major problem in the digital asset space is volatility. Asset prices fluctuate 20%, 30%, 40% or more in a given week; and investors need a way to quickly exit when markets get choppy. At the dawn of the industry, it was hard for digital asset companies to get access to traditional financial infrastructure. This meant that selling digital assets into the most stable asset today–the US dollar– was challenging. The solution? Stablecoins, which gave traders a way to move quickly in and out of digital asset positions without needing to move into actual US dollars. They provide all the stability of the dollar without requiring the trader to exit the blockchain based ecosystem. Today, the total amount of value held in stablecoins is just over