#PowellRemarks What Are Stablecoins# and How Do They Work?

Stablecoins are a type of cryptocurrency designed to offer price stability in a highly volatile market. Unlike bitcoin or ether, stablecoins are pegged to relatively stable assets, typically fiat currencies like the U.S. dollar or commodities like gold.

This pegging mechanism helps them maintain a predictable value, making them ideal for:

Everyday transactions

Trading and hedging

Protecting against market volatility

Top Stablecoins in the Crypto Market

Here are some of the most widely used stablecoins in the market today:

Tether (USDT)

USD Coin (USDC)

Dai (DAI)

USD1 (USD1)

First Digital USD (FDUSD)

As of June 2025, these five tokens collectively hold a market capitalization of more than $220 billion, reflecting their significant footprint across the crypto landscape and wider financial ecosystem.