Fiat-Backed Token

Definition ∞ A fiat-backed token is a type of stablecoin whose value is pegged to and fully collateralized by a traditional government-issued currency, such as the US dollar or Euro. For every token issued, an equivalent amount of fiat currency is held in reserve by a custodian. This mechanism aims to provide price stability and bridge traditional finance with the digital asset ecosystem. These tokens are designed for reliable value transfer and as a store of value.
Context ∞ Fiat-backed tokens are a significant component of the digital asset market, facilitating trading and acting as a safe haven during market volatility. News frequently covers regulatory developments concerning these tokens, particularly requirements for reserve attestations and operational transparency. Debates continue regarding the regulatory oversight needed to ensure their stability and consumer protection.

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→Fiat-Backed Token

→Digital Asset Platform

→State-Level Finance

State-Owned Bank of North Dakota to Launch Wholesale Interbank Stablecoin

BND's state-backed stablecoin leverages DLT for T+0 interbank settlement, reducing counterparty risk and optimizing liquidity management across the state's financial ecosystem.

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→Payment Modernization

→Tokenized Deposits

→Payment Systems

Bank of North Dakota and Fiserv Launch State-Issued Interbank Stablecoin

The state-backed wholesale stablecoin, built on enterprise DLT, establishes a compliant, real-time settlement layer for interbank and global treasury flows.

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→Financial Infrastructure Modernization

→Wholesale Financial Markets

→Real-World Asset Digitization

Santander Tokenizes Chilean Peso Deposits on Private DLT for Instant Settlement

The tokenization of fiat deposits on a permissioned ledger delivers T+0 internal liquidity, significantly enhancing capital velocity and reducing operational float.

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→Digital Asset Custody

→Global Settlement

→Fiat-Backed Token

Sony Bank Pursues US Charter for Regulated Stablecoin Issuance and Custody

Vertically integrating digital asset issuance and custody secures a compliant, in-house settlement layer for future global business operations.

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→Institutional Finance

→Payment Processor Strategy

→Real-Time Gross Settlement

Fiserv and Bank of North Dakota Launch Stablecoin for Inter-Bank Settlement

The integration of fiat-backed digital assets into core payment rails establishes a new, compliant settlement layer, optimizing global liquidity and unlocking new revenue streams.

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→Enterprise Treasury

→Blockchain Integration

→Global Commerce

Visa Expands Stablecoin Pilot for Cross-Border Liquidity Pre-Funding

The network is leveraging regulated stablecoins on public blockchains to enable real-time, 24/7 cross-border liquidity management, drastically reducing trapped capital and optimizing working-day cycles.

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→FCA Registration

→Sterling Stablecoin

→Consumer Protection

FCA Registers Sterling Stablecoin Issuer, Validating UK Digital Asset Model

The UK FCA's authorization of a sterling stablecoin issuer sets a new operational precedent for compliant, fiat-backed digital assets, clarifying the path to market legitimacy.

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→Global Payments Rail

→Developer Friendly

→High-Throughput Chain

Sui Launches USDsui Native Stablecoin with Stripe Subsidiary Bridge Integration

This enterprise-grade stablecoin, backed by a Stripe entity, injects compliant, high-velocity "on-chain dollars" directly into the Sui DeFi layer, accelerating RWA composability.

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→Sterling Stablecoin

→Market Structure

→Liquid Backing Assets

Bank of England Proposes Strict Sterling Stablecoin Holding Limits and Dual Regulation

Issuers must architect compliance systems for transitional holding limits and maintain 1:1 liquid asset backing under the BoE-FCA dual regime.

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→Smart Contract Automation

→Digital Asset Issuance

→Treasury Liquidity Management

Visa Launches Tokenized Asset Platform, BBVA Pilots Ethereum Stablecoin for RWA Settlement

VTAP enables institutional partners to issue compliant fiat-backed tokens on Ethereum, digitizing settlement and unlocking new on-chain capital formation capabilities.