Minting Authority

Definition ∞ Minting Authority designates the power or permission to create new units of a digital asset, such as tokens or stablecoins, within a blockchain protocol. This authority can be centralized, held by a single entity, or decentralized, governed by smart contracts or community consensus. The control over minting directly influences the supply and, consequently, the value and stability of the asset.
Context ∞ The allocation and control of minting authority are central to discussions regarding the decentralization, security, and economic model of various digital assets. For stablecoins, the minting authority’s transparency and accountability are paramount for maintaining peg stability. Regulatory bodies are increasingly scrutinizing who holds this authority and how it is exercised, particularly for assets with significant market capitalization.