Cryptocurrencies have yet to reach mainstream adoption, but one part of the market that has seen substantial growth is stablecoins.

Stablecoins have become popular in the digital-currency industry because they don’t have the wild volatility associated with other crypto assets such as bitcoin. Stablecoin prices are often pegged at a one-to-one ratio to a stable asset such as the U.S. dollar, which is held in reserve as collateral. That means a buyer who pays $1 for a stablecoin usually can redeem it for $1 later on.

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