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Exploring Stablecoin Processes: Value Stabilization and Collateralization

Exploring Stablecoin Processes: Value Stabilization and Collateralization

December 3, 2025 Category: Blog

Stablecoins, designed to maintain a steady price, rely on two fundamental ideas: pegging and asset backing. Pegging refers to the process by which the stablecoin’s value is linked to a benchmark asset, typically the US Dollar. This is achieved through various techniques, ranging from asset-backed reserves with cryptocurrencies to mathematical sta

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