Fiat backed stablecoins (also called fiat-collateralized stablecoins) hold their value by maintaining a reserve of the underlying fiat currency that the stablecoin is pegged to. The reserve is held by the issuer of the stablecoin and is meant to ensure that there is always enough collateral to support the value of the stablecoin. For example,… Continue reading What are Fiat Backed Stablecoins?