Stablecoin Ecosystem Primer

Document summary

A stablecoin is a digital asset that attempts to peg its value to a target price in order to achieve price stability. This paper from FTSE Russell and Digital Asset research shed light on this rapidly growing part of the digital asset ecosystem which is seeing rising demand from digital asset traders and investors who seek to maintain volatility-resistant stable valuations while replicating the instant processing and settlement abilities of cryptocurrencies. The paper examines the rising stars of this asset class and explores why a number of Central Banks are launching or considering sponsoring a Central Bank Digital Currency (CBDC).