Fiat-backed stablecoin
A stablecoin that uses fiat-denominated reserves to support its target value.
In more detail
The token moves onchain, while its backing usually sits with an issuer and custodians. Cash, reserve instruments and redemption arrangements connect those worlds. A dollar label therefore tells only part of the story: reserve quality and who can actually redeem the token matter too.
How you might use it
You send a dollar stablecoin to another wallet while its issuer holds the supporting cash and reserve instruments offchain.
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