Stablecoins

A stablecoin holds a target value, almost always one dollar. They are the part of crypto with the clearest use outside speculation: payments, remittances and settlement between platforms. What matters is that they are not all held up the same way, and the word stablecoin hides very different mechanisms: bank reserves, overcollateralized crypto, or positions hedged with derivatives.

What to compare: Ask what exactly backs each one and who holds it. None pays yield to its holder by default: in fiat-backed designs, the reserve yield goes to the issuer.