

What is a stablecoin? What are the types of stable currencies? Is it related to US Treasury bonds?
Jul 07, 2025 pm 08:36 PMStable coins are digital currencies that maintain stable value by anchoring specific assets. They are mainly divided into three categories: fiat currency collateral, crypto asset collateral and algorithmic. Among them, fiat currency collateral such as USDT and USDC are widely used, and their reserves are often invested in US Treasury bonds, forming a close connection with the traditional financial system.
What is a stablecoin?
Stablecoin is a special type of digital currency whose value is linked to a relatively stable asset. The most common situation is anchoring 1:1 with fiat currencies (such as USD), which means that a unit of stablecoins can theoretically be exchanged for one dollar. Its main purpose is to combine the stability of traditional finance and the efficiency of digital technology to solve the problem of violent fluctuations in the prices of other crypto assets, so that they can be better applied to daily payments, transaction settlements and store of value.
Main trading platforms for stablecoins
- Binance Binance: ()
- Ouyi OKX: ()
- Huobi: ()
- Gate.io Sesame Opening: ( )
The main types of stablecoins
According to the support mechanism behind it, stablecoins can be mainly divided into the following three categories:
-
Fiat currency collateralized stablecoin
This is the most mainstream and easy to understand. Such stablecoins are supported by the real world fiat currency reserves. For every unit of stablecoin issued by the issuer, he deposits fiat currency of equivalent value (such as USD, Euro) in his reserve account. Users can redeem fiat currency at a fixed ratio at any time with stable coins. This mode has higher transparency and strongest stability. Representative items: USDT (Tether), USDC (USD Coin).
-
Crypto Asset Pledge Stable Coins
These stablecoins use other crypto assets such as Ethereum as collateral. To cope with the risk of price fluctuations in the collateral itself, the system usually requires over-collateral. For example, users need to pledge a crypto asset worth $200 to generate a stablecoin worth $100. This mechanism is more decentralized and does not rely on traditional financial institutions. Representative project: DAI.
-
Algorithm stablecoin
This is a stablecoin that does not rely on any collateral. It automatically regulates the supply in the market through algorithms in smart contracts, thus maintaining its price stability. When the price is higher than the anchor value, the system will issue additional issuance to lower the price; when the price is lower than the anchor value, it will be repurchased or destroyed to increase the price. This model is very exquisitely designed, but it also faces huge risks and challenges. There have been cases of collapse caused by mechanism failure in history.
The relationship between stablecoins and US Treasury bonds
Stablecoins, especially the largest fiat-collateralized stablecoin , have a profound and important connection with U.S. Treasury bonds.
This connection is mainly reflected in the composition of reserve assets. Stablecoin issuers like USDT and USDC need to manage tens of billions or even hundreds of billions of dollars in reserves to ensure that the stablecoins they issue are fully supported by value. To ensure the security and liquidity of these reserves, the issuer cannot simply deposit all cash in a normal current account, but will invest it in assets with extremely low risk and easy to cash.
US Treasury Securities has become the preferred investment target for these issuers because it is recognized by the world as one of the safest financial assets. Stablecoin issuers use the vast majority of their reserves to purchase short-term US Treasury bonds, Treasury bonds, etc. Doing so can not only ensure the security of the assets, but also obtain certain interest income.
Therefore, the issuers of large stablecoins have actually become big buyers of US Treasury bonds. Their purchasing behavior affects the demand in the US Treasury market to a certain extent. This also means that the stability of the stablecoin world has formed a close symbiotic relationship with the core of the traditional financial system, the United States' sovereign debt. The transparency and composition of stablecoin reserve assets have therefore become the focus of attention of regulators and market participants.
Summarize
In short, stablecoins are the bridge connecting the digital world with traditional finance, anchoring value through different mechanisms. Among them, fiat currency collateralized stablecoins are the mainstream of the current market. In order to ensure the stability of their own value, they invest huge reserves in high-credit assets such as U.S. Treasury bonds, thus creating an inseparable connection with the global core financial system. For anyone who is concerned about the digital asset field, understanding the working principle of stablecoins and the reserve asset structure behind them is the key to assessing their reliability and future development trends.
The above is the detailed content of What is a stablecoin? What are the types of stable currencies? Is it related to US Treasury bonds?. For more information, please follow other related articles on the PHP Chinese website!

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Yes, you can get USDT for free in the following 5 ways: 1. Participate in airdrop tasks on mainstream exchanges, such as registering and giving away, completing novice tasks, and inviting friends to get rewards; 2. Join the blockchain project community and obtain airdrops through Web3 social platform or Twitter/Discord interaction; 3. Participate in the "test network" activity, register the test chain address and simulate the use of DApp to get incentives; 4. Complete tasks on the cryptocurrency navigation platform to receive novice gift packages, participate in sign-in, lottery and other activities; 5. Interact with the content creation and community, and publish original content to obtain USDT rewards from the project party. At the same time, you need to pay attention to security risks, do not fill in private keys, do not believe in scams, and choose mainstream platforms to participate.

The duration of the airdrop dividend is uncertain, but the LayerZero, StarkNet and ZK ecosystems still have long-term value. 1. LayerZero achieves cross-chain interoperability through lightweight protocols; 2. StarkNet provides efficient and low-cost Ethereum L2 expansion solutions based on ZK-STARKs technology; 3. ZK ecosystem (such as zkSync, Scroll, etc.) expands the application of zero-knowledge proof in scaling and privacy protection; 4. Participation methods include the use of bridging tools, interactive DApps, participating test networks, pledged assets, etc., aiming to experience the next generation of blockchain infrastructure in advance and strive for potential airdrop opportunities.

Ordinary investors can discover potential tokens by tracking "smart money", which are high-profit addresses, and paying attention to their trends can provide leading indicators. 1. Use tools such as Nansen and Arkham Intelligence to analyze the data on the chain to view the buying and holdings of smart money; 2. Use Dune Analytics to obtain community-created dashboards to monitor the flow of funds; 3. Follow platforms such as Lookonchain to obtain real-time intelligence. Recently, Cangming Money is planning to re-polize LRT track, DePIN project, modular ecosystem and RWA protocol. For example, a certain LRT protocol has obtained a large amount of early deposits, a certain DePIN project has been accumulated continuously, a certain game public chain has been supported by the industry treasury, and a certain RWA protocol has attracted institutions to enter.

Is DAI suitable for long-term holding? The answer depends on individual needs and risk preferences. 1. DAI is a decentralized stablecoin, generated by excessive collateral for crypto assets, suitable for users who pursue censorship resistance and transparency; 2. Its stability is slightly inferior to USDC, and may experience slight deansal due to collateral fluctuations; 3. Applicable to lending, pledge and governance scenarios in the DeFi ecosystem; 4. Pay attention to the upgrade and governance risks of MakerDAO system. If you pursue high stability and compliance guarantees, it is recommended to choose USDC; if you attach importance to the concept of decentralization and actively participate in DeFi applications, DAI has long-term value. The combination of the two can also improve the security and flexibility of asset allocation.

DAI is suitable for users who attach importance to the concept of decentralization, actively participate in the DeFi ecosystem, need cross-chain asset liquidity, and pursue asset transparency and autonomy. 1. Supporters of the decentralization concept trust smart contracts and community governance; 2. DeFi users can be used for lending, pledge, and liquidity mining; 3. Cross-chain users can achieve flexible transfer of multi-chain assets; 4. Governance participants can influence system decisions through voting. Its main scenarios include decentralized lending, asset hedging, liquidity mining, cross-border payments and community governance. At the same time, it is necessary to pay attention to system risks, mortgage fluctuations risks and technical threshold issues.

USDT is not a scam, but there are risks. 1. Tether provides liquidity in the crypto market by issuing USDT, a stablecoin anchored by the US dollar; 2. The company's background is related to Bitfinex, and has been fined for audit issues but has increased transparency; 3. The reserve assets are mainly US Treasury bonds rather than pure cash, and there are certain financial risks; 4. Face risks such as insufficient audit frequency, centralized control and compliance restrictions; 5. The USDT market is highly accepted, but trust needs to be based on continuous disclosure and compliance operations. Overall, USDT is trustworthy but does not equal zero risk, and users should be cautious.

To transfer USDT to the exchange for transactions, you must first confirm that the chain type matches, the address is correct, and complete real-name authentication. 1. Register and authenticate the mainstream exchange account with real name; 2. Confirm that the wallet is consistent with the USDT chain type of the exchange (such as TRC20); 3. Obtain the recharge address of the corresponding chain on the exchange and copy it accurately; 4. Initiate transfers from the wallet and pay the corresponding handling fee; 5. After arrival, you can trade in the spot or contract market; 6. Pay attention to checking the address, avoid transferring to the contract address, and give priority to low-processing networks. The entire process is usually completed in minutes, ensuring operational safety is key.

USDC is safe. It is jointly issued by Circle and Coinbase. It is regulated by the US FinCEN. Its reserve assets are US dollar cash and US bonds. It is regularly audited independently, with high transparency. 1. USDC has strong compliance and is strictly regulated by the United States; 2. The reserve asset structure is clear, supported by cash and Treasury bonds; 3. The audit frequency is high and transparent; 4. It is widely accepted by institutions in many countries and is suitable for scenarios such as DeFi and compliant payments. In comparison, USDT is issued by Tether, with an offshore registration location, insufficient early disclosure, and reserves with low liquidity assets such as commercial paper. Although the circulation volume is large, the regulatory recognition is slightly low, and it is suitable for users who pay attention to liquidity. Both have their own advantages, and the choice should be determined based on the purpose and preferences of use.