Stablecoins aim to track a reference unit, often USD. Fiat-backed models hold reserves; on-chain attestations and audit quality matter for trust. Crypto-collateralised models use over-collateralised vaults and liquidations.
De-pegs can occur during stress when redemption queues, collateral quality, or confidence breaks. Treat “$1” as a market price with risk, not a physical constant.
Regulatory treatment varies globally. Read issuer documentation before using any token as settlement rail.
Educational only · not investment advice · Risk disclosures