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Multi-Stablecoin Settlement

Definition

Multi-stablecoin settlement refers to the process of conducting financial transactions or clearing obligations using several different stablecoins rather than a single one. This approach enhances robustness by diversifying counterparty risk and reducing reliance on any sole stablecoin issuer. It allows participants to choose their preferred stablecoin based on liquidity, regulatory status, or underlying collateral. This system improves resilience against potential de-pegging events or regulatory actions affecting a specific stablecoin.