Stablecoins and the Hidden Security Risks Behind Price Stability

Stablecoins are a category of crypto assets built to hold a steady value by pegging each token to an external reference, usually a national currency such as the U.S. dollar, though some are tied to commodities like gold. The promise is simple. Every token in circulation should be redeemable for an equivalent amount of the underlying asset, shielding holders from the wild price swings that define most unpegged cryptocurrencies.