Native Stablecoin

Definition ∞ A native stablecoin is a digital currency designed to maintain a stable value relative to a fiat currency or other asset, and it is issued directly on its own blockchain or protocol, rather than being a token on another chain. This design often allows for deeper integration with the underlying network’s functionality and governance. It provides a stable medium of exchange within a specific ecosystem.
Context ∞ Native stablecoins are a significant area of development in the crypto space, with news often reporting on new projects aiming to create stable assets deeply embedded within their respective blockchain environments. These stablecoins seek to minimize reliance on external collateral or centralized issuers, promoting greater decentralization. The regulatory landscape for such stablecoins is a key area of ongoing discussion and policy formation.