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12Jun
What Are Stablecoins and Why Is Their Price Around $1?
Stablecoins are digital tokens whose exchange rate is pegged to the dollar, euro, gold, or another base asset. A simple explanation of stablecoins is this: blockchain ensures fast token transfers, while a reserve or mathematical mechanism is supposed to keep its price near a set benchmark.
Stability does not occur automatically. It is maintained by one of four models:
- fiat backing with cash, deposits, and short-term government bonds;
- overcollateralization with crypto assets in smart contracts;
- backing by commodities, such as gold;
- algorithmic supply regulation without a fully liquid reserve;
The first three models differ in the quality of collateral and redemption speed. Algorithmic stablecoins carry the highest risk: the collapse of TerraUSD and LUNA in May 2022 wiped out about $40 billion in market value.
How Stablecoins Differ from Bitcoin
Bitcoin does not promise a fixed exchange rate and has no issuer who redeems coins at face value. In contrast, stablecoins are created for payments, transfers, storing dollar liquidity, and trading without constant fiat exit. The technical logic of purchasing typical crypto assets is demonstrated in a step-by-step guide to buying Bitcoin, though platforms, fees, and legal status may have changed since.
The Stablecoin Market in 2026 by the Numbers
As of August 28, 2026, DefiLlama estimated the sector’s total capitalization at $304.05 billion. USDT held 60.29% of the market with $183.32 billion, and USDC had $73.90 billion. Together, these two issuers controlled about 84.6% of the total supply.
Top Popular Stablecoins
The ranking by market capitalization reflects not only demand but also the concentration of reserve and issuer risk. As of the snapshot date, the top five were as follows:
- Tether USDT – $183.32 billion.
- USD Coin USDC – $73.90 billion.
- Sky Dollar USDS – $6.70 billion.
- Dai DAI – $4.80 billion.
- World Liberty Financial USD1 – $4.12 billion.
Large issuance does not guarantee safety. Before buying, one should look at the reserve composition, issuer jurisdiction, audit, right to direct redemption, liquidity of a particular network, and history of deviation from the peg.
According to Visa and Artemis data, the adjusted volume of stablecoin transfers for 12 months leading to mid-2026 reached $10.2 trillion, which is 63% more year-on-year. However, on-chain turnover is not equal to payment for goods: it includes exchange transfers, arbitrage, DeFi, and transfers between wallets of the same owner.
New Stablecoin Rules in the USA
The GENIUS Act became the first US federal law specifically concerning payment stablecoins. The law was adopted on July 18, 2025, and the US Treasury expects the main requirements to take effect on January 18, 2027. In August 2026, the agency published draft rules and opened a 60-day comment period.
The new system changes issuer requirements even before the formal start. Businesses are preparing for rules such as:
- a license from a federal or state authority to issue payment tokens in the US;
- a reserve of at least 1:1 in permitted highly liquid assets;
- monthly disclosure of reserves and management certification;
- separate AML, KYC, and sanctions procedures;
- a ban on paying income solely for holding payment stablecoins;
Foreign issuers will also be unable to ignore US requirements. From July 18, 2028, digital platforms generally will not have the right to offer tokens from unlicensed issuers to persons in the US.
MiCA and Stablecoins in the EU in 2026
The MiCA regulation divides stable tokens into EMT – electronic money tokens pegged to a single official currency – and ART, whose value is oriented to other assets or combinations thereof. Rules for EMT and ART have been in effect since June 30, 2024, and the maximum transition period for crypto service providers ended on July 1, 2026.
What the European Regulator Checks
The issuer of an EMT must be a bank or electronic money institution. The owner has the right to demand redemption at any time and at face value without fees. MiCA also prohibits issuers and crypto services from charging interest for holding EMTs.
The European model relies on several checkpoints:
- Verify issuer authorization and registration in ESMA’s registry.
- Read the white paper and token redemption terms.
- Find out who holds the reserve and how it is segregated from company funds.
- Ensure the exchange or provider has a CASP license in the EU.
- Assess limits, fees, network risks, and address freezing procedures.
Companies launching crypto payments in Europe must integrate corporate structure, MiCA authorization, financial monitoring, and data protection. On Poshuk.info, you can compare offerings for registering a company in Europe, but a company’s regular business license does not replace an issuer’s or CASP license.
Hong Kong: Licensing Regime Already in Effect
The Stablecoins Ordinance came into force on August 1, 2025. Issuance of fiat-backed stablecoins in Hong Kong, as well as tokens pegged to the Hong Kong dollar outside the territory, requires an HKMA license. The regulator checks reserves, redemption at face value, risk management, cybersecurity, and AML procedures.
This model points the way for Asia. Token issuance becomes a regulated payment business, not just the deployment of a smart contract.
Stablecoins in Ukraine: What Is in Effect in 2026
As of August 2026, Ukraine has not yet completed the relevant reform. The Verkhovna Rada adopted bill No. 10225-d as a basis on September 3, 2025, but the document is being prepared for a second reading. The NSSMC notes that the draft takes into account MiCA and the European Travel Rule and is intended to define provider authorization, taxation, and client protection.
While a special regime is not yet operational, a stablecoin does not become hryvnia, a bank deposit, or a state-guaranteed savings instrument. Companies building a payment product must separately verify regulations on financial services, currency operations, financial monitoring, and taxes. The financial services licensing category can help find relevant consultants, but the license complexity depends on the actual business model.
How to Choose a Stablecoin and Not Confuse Stability with a Guarantee
USDC temporarily dropped to about $0.87 in March 2023 after $3.3 billion of Circle’s reserves were frozen in Silicon Valley Bank, as described by a Federal Reserve research. The rate recovered, but this episode showed that even fiat backing carries banking, liquidity, and operational risks.
A brief checklist before transferring a significant sum:
- Verify the issuer, smart contract address, and network;
- Find a recent reserve report and auditor name;
- Check the token’s right to direct redemption from the issuer;
- Evaluate liquidity, network fee, and risk of address freezing;
- Make a test transfer and do not keep the entire reserve in one token;
For a corporate deal or payment provider integration, a deeper due diligence of the counterparty is required. The check should cover licenses, beneficiaries, reserves, sanctions compliance, lawsuits, audit, and refund procedures.
Forecast of Stablecoin Development by 2030
Citi forecasts $1.9 trillion in total issuance under the base scenario and $4 trillion under the rapid growth scenario by 2030. This is not a promise. The scale will be determined by banking integrations, international B2B payments, regulatory recognition, government bond yields, and issuers’ ability to withstand massive redemptions.
Between 2026 and 2030, the market will likely be driven by four processes:
- Banks and payment companies will issue their own regulated tokens.
- Stablecoins will be used more often for cross-border settlements and treasury operations.
- The share of tokenized deposits and income-bearing assets will grow alongside classic stablecoins.
- Regulators will tighten requirements on reserves, redemption, AML, and data disclosure.
Dollar tokens will maintain an advantage in the near years, but MiCA will stimulate issuance of regulated euro stablecoins. Competition will shift from loud issuance to the quality of reserves, access to redemption, and real usage in payments.