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Fiat-Peg Assets

Definition

Fiat-peg assets are digital assets designed to maintain a stable value relative to a specific fiat currency, such as the US dollar or Euro. These assets, commonly known as stablecoins, aim to reduce price volatility inherent in other cryptocurrencies. They achieve their peg through various mechanisms, including collateralization with fiat reserves or algorithmic stabilization. They serve as a reliable medium of exchange within the digital asset economy.