#StablecoinLaw Unlike volatile cryptocurrencies like Bitcoin, stablecoins are designed to hold a steady value by being pegged one-to-one to a stable asset, usually to the U.S. dollar. For every stablecoin in circulation, the issuing company is expected to hold equivalent reserves, such as cash or short-term Treasury bonds.

In a Brookings Institution report, stablecoins currently in circulation have a collective market capitalization of over $250 billion with approximately 99% pegged to the U.S. dollar.

Among major stablecoin issuers are Tether (USDT) with a market cap of nearly $161 billion, and Circle (USDC) with about $65 billion, according to data from CoinMarketCap.