Fiat backed stablecoins are digital assets that maintain financial reserves in fiat currency held by regulated institutions such as banks.
- USDT – Tether Cryptocurrency (Started in 2014)
- USDC – USD Coin (Started in 2018)
- BUSD – Binance USD (Started in 2019)
- GBPT – Poundtoken (Started in 2022)
- EUROC – Euro Coin (Started in 2022)
They are the most commonly used, accepted, transacted and trusted type of stablecoin. The stability of fiat-backed stablecoins is reliant on transparency and adequate reserves.
It is most often that 1 real world currency = 1 stablecoin, as these are backed and pegged at a 1:1 basis.