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Stablecoins: Digital Dollars on the Blockchain

Everything you need to understand stablecoins — what they are, how they hold their peg, how USDC and USDT differ, and why networks like Stellar make them useful for real payments.

Journals: understand stablecoins

In-depth guides covering what stablecoins are, how they hold their peg, and how the biggest issuers compare.

What Is a Stablecoin? How USDC Works on Stellar
The foundations: what stablecoins are, the four types, and why they matter for payments and DeFi.
USDC vs USDT: What's the Difference?
The two largest dollar stablecoins compared on reserves, transparency, regulation, and where each is used.
How Stablecoins Work: Fiat-Backed vs Crypto-Backed vs Algorithmic
The three peg mechanisms explained — reserves, over-collateralization, and algorithms — with real examples.
Are Stablecoins Actually Decentralized?
A honest look at issuer control, freezing powers, reserve custody, and what "decentralized" really means here.
USDC on Stellar: Fast, Cheap Dollar Payments
How native USDC on Stellar settles in seconds for fractions of a cent — and how to hold and send it.

Go deeper: masterclass and courses

Structured lessons that take you from concepts to hands-on practice.

Stablecoins in Practice: Digital Dollars on the Blockchain
A 10-lesson masterclass on stablecoin mechanics, risks, and real-world use. First two lessons free.
Anchors course
Learn how anchors connect fiat money to the Stellar network — the rails stablecoins run on.
Basic Concepts course
Blockchain and Stellar fundamentals for beginners.

Glossary: stablecoin vocabulary

Quick definitions of every term used across these guides.

Frequently asked questions

What is a stablecoin in simple terms?
A stablecoin is a cryptocurrency designed to hold a steady value — usually pegged 1:1 to a fiat currency like the US dollar. It combines the stability of traditional money with the speed and programmability of blockchain.
Which stablecoin is the safest?
Fiat-backed stablecoins from regulated issuers are generally considered safest. USDC (Circle) publishes monthly reserve attestations and is overseen by US regulators; USDT (Tether) is larger but has faced more scrutiny over its reserves. No stablecoin is risk-free — depegs and issuer risk exist.
Can a stablecoin lose its peg?
Yes. Depegging happens when the market price drifts from the intended value. USDC briefly traded near $0.87 during the 2023 Silicon Valley Bank crisis before recovering; algorithmic stablecoin UST collapsed entirely in 2022.
Why do people use stablecoins instead of bank transfers?
Stablecoin transfers settle in seconds, run 24/7, cost fractions of a cent on networks like Stellar, and can be programmed into apps — making them useful for remittances, payroll, trading, and DeFi.