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Stablecoins: Understanding Counterparty Risk Gemini Medium

A new kind of digital asseta stable value coinoften referred to as a stablecoin, has been proliferating in the cryptocurrency markets. Briefly, a stablecoin is a cryptocurrency pegged to a stable asset, such as fiat currency like U.S. dollars. Stablecoins are distinct from other cryptocurrencies like bitcoin, where the price is driven by market dynamics (i.e., supply and demand) and not from the asset which it corresponds to.