What are digital dollars and stablecoins?
A stablecoin is a digital dollar. It is a token that lives on a blockchain and is designed to always be worth one US dollar. It moves like a message — instantly, anywhere, at any hour — while holding the value of the currency you already understand.
What is a stablecoin?
A stablecoin is digital money pegged to a real-world currency, almost always the US dollar. One token equals one dollar, and you can redeem it for one dollar.
Unlike volatile crypto assets, a stablecoin is built to hold its value, so the number you hold today is the number you hold tomorrow.
How do they stay worth a dollar?
The most trusted stablecoins are fully backed. For every digital dollar in circulation, the issuer holds a real dollar (or a short-term US treasury) in reserve.
Those reserves are published and independently attested, so anyone can check that the tokens are covered. That backing is what keeps the price anchored at one dollar.
Why use a digital dollar?
Because it combines the stability of the dollar with the speed of the internet. You can send it across the world in seconds, hold it without a bank, and put it to work earning yield — all from your phone.