Stablecoins
What are Stablecoins? 2026 Practical Guide
Stablecoins are crypto tokens pegged 1:1 to a fiat currency (usually USD) used as a payment rail; total USD stablecoin supply exceeds $200 billion.
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Stablecoins are tokens issued on public blockchains (Ethereum, Solana, Tron, Base, and others) pegged 1:1 to a fiat currency — typically the US dollar. The main issuers are Tether (USDT), Circle (USDC), PayPal (PYUSD), and First Digital (FDUSD). By 2026 aggregate USD stablecoin market cap exceeds $200 billion.
Unlike volatile cryptocurrencies, stablecoins are backed by audited reserves in cash, Treasury bills, and overnight reverse repos. Circle and PayPal publish monthly attestations; Tether has increased its transparency in response to the GENIUS Act and EU MiCA requirements.
Stablecoins have become a meaningful payment rail for remittances, cross-border B2B settlement, corporate treasury, and agentic commerce. Stripe, PayPal, and Visa offer USDC settlement; SWIFT has launched pilots interoperating with tokenized deposits and regulated stablecoins.
Regulation is moving fast: the US GENIUS Act (July 2025), EU MiCA (already in force), and Hong Kong's Stablecoin Ordinance are setting a global framework with reserve, AML, and orderly-resolution requirements for issuers.
Key facts
- •Aggregate USD supply exceeds $200 billion in 2026
- •Main issuers: Tether (USDT), Circle (USDC), PayPal (PYUSD)
- •Regulation: GENIUS Act (US), MiCA (EU), Stablecoin Ordinance (HK)
- •Reserves in cash, T-bills, and overnight repos
- •Active rail for remittances, cross-border B2B, treasury
- •Stripe, PayPal, and Visa offer USDC settlement
- •SWIFT piloting interoperability with regulated stablecoins