Stablecoin
A stablecoin is a crypto token designed to hold a stable value, usually by tracking one currency such as the US dollar and holding reserve assets to back it. Payment firms use dollar stablecoins to move and hold value on blockchains outside banking hours.
How it works
The two largest dollar stablecoins are Tether's USDT and Circle's USDC. Tether's transparency data showed 181.03 billion USDT in net circulation on 28 October 2026, and Circle's data showed 71.29 billion USDC the same day. Both issuers redeem at one dollar per token for onboarded customers, subject to their terms and fees.
Regulation is arriving jurisdiction by jurisdiction. In the US, the GENIUS Act, signed on 18 July 2025, created the first federal regulatory system for payment stablecoins, with 100% reserve backing in liquid assets such as US dollars or short-term Treasuries and monthly public disclosure of reserves. In the EU, MiCA treats a token that references one official currency as an e-money token, which only credit institutions and e-money institutions can issue.
For treasury teams, a stablecoin balance is a claim on an issuer, held in a wallet or with a custodian, on a specific blockchain. Circle states that on-chain USDC transfers are irreversible. Turning tokens into fiat depends on the issuer's redemption terms, an exchange or an OTC desk, each with its own hours, minimums and counterparty risk.
Example
A firm holds $5,000,000 of USDC to fund weekend payouts in Mexico. On Saturday it sells $1,200,000 of USDC to a local exchange partner for pesos at 0.15% below mid-market, a cost of $1,800. Without the stablecoin, it would have bought the pesos on Friday and carried the FX risk over the weekend.
Frequently asked questions
Is a stablecoin the same as e-money?
In the EU, a token referencing one official currency is an e-money token under MiCA, and holders have a claim on the issuer redeemable at par. Elsewhere, the legal status depends on local law.
Who can redeem directly with the issuer?
Only onboarded customers. Tether redeems for KYC-verified customers from US$100,000, and Circle redeems for holders of a Circle Mint account.
Where Polynopsis fits
Polynopsis reads stablecoin wallets through their public addresses, read-only, so stablecoin balances sit in the same position as fiat balances at banks and partners.
Compared with
Related terms
Sources
- Tether transparency data (USDT supply by chain) · Tether
- Circle stablecoin supply API (USDC and EURC by chain) · Circle
- Fact Sheet: President Donald J. Trump Signs GENIUS Act into Law (18 July 2025) · The White House
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) · EUR-Lex, Publications Office of the European Union
- USDC risk factors · Circle
- Fees · Tether
- USDC Terms · Circle
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator