Introduction to Stablecoins

Stablecoins are a type of cryptocurrency whose value is directly linked to another currency such as US Dollars or Euros.

If you sell 1 US Dollar of a stablecoin you would get 1 US Dollar into your bank account.

Stablecoins play a crucial role in the cryptocurrency ecosystem due to their stability. Cryptocurrencies like Bitcoin and Ether offer numerous benefits, such as not requiring trust in an intermediary institution to send payments anywhere and to anyone. However, their prices are unpredictable and can fluctuate wildly, making them challenging for everyday use. Stablecoins aim to tackle these price fluctuations by tying the value of cryptocurrencies to more stable assets, usually fiat currencies. This stability aims to maintain their value over time and encourages their adoption in regular transactions.

Usually, the entity (issuer) behind a stablecoin will set up a “reserve” where it securely stores the asset or basket of assets backing the stablecoin — for example, $1 million in an old-fashioned bank (the kind with branches and tellers and ATMs in the lobby) to back up one million units of a stablecoin.

They enable payments anywhere in the world to become instant, 24/7 and low cost. Monthly transaction volumes have grown to over $450B a month, they are the fastest growing payment rail in history.

Who are the main issuers

Circle (USDC)

Total value: $52.02B

Currencies: USD / EUR

Blockchains: 16 (including Ethereum / Arbitrum / Sui / Polygon)

Tether (USDT)

Total value: $138.92B

Currencies: USD / MXN / CNY

Blockchains: 10 (including Ethereum / Tron)

PayPal (PYUSD)

Total value: $501.29M

Currencies: USD

Blockchains: 2 (Ethereum / Solana)

*as of 24th January 2025

Here at Atlas we see the power and potential of stablecoins

Having operated in the international payments space since 2015, we know the pain points of our customers making and receiving payments.

As a product we offer our customers the ability to receive, hold and pay with stablecoins, across multiple issuers, currencies and blockchains.

With the ability to quickly and easily convert fiat money into stablecoin and stablecoin balances back into fiat money.