Stablecoin
A digital asset built to keep a stable value, usually pegged to the US dollar, that moves on blockchains around the clock.
What a stablecoin is
A stablecoin is a digital asset that aims to hold a fixed value against a currency, most often the US dollar. Fiat-backed stablecoins keep reserves of cash and short-term government debt, and the issuer redeems tokens for dollars. Under the GENIUS Act, US payment stablecoins must hold 1:1 reserves from January 18, 2027.
How it works
An issuer creates tokens when a customer who has passed KYC checks sends it dollars, and destroys them on redemption. In between, tokens move between digital wallets on a blockchain, settling in seconds or minutes, any day of the week.
- 01 · MINT A customer sends dollars to the issuer, which creates the same value in new tokens.
- 02 · TRANSFER Tokens move between wallets on the blockchain at any hour, weekends included.
- 03 · REDEEM The issuer takes tokens back, destroys them and pays out dollars from its reserves.
When businesses use it
- Paying suppliers, contractors and subsidiaries across borders
- Moving treasury funds between exchanges, wallets and bank accounts at any hour
- Paying out sellers, creators and gig workers who use digital wallets
- Settling balances between payment providers, card networks and their partners
Cross River connects the stablecoins it supports with ACH, wires, RTP and card networks. Stablecoin pay-ins are recorded in US dollars, and payouts convert directly from dollars. Stablecoins are not deposits and are not FDIC insured. See stablecoin payments at Cross River.