A brief overview of different types of stablecoins

While blockchain technology enables rapid clearing and settlement with transparency and immutability, most crypto-assets are volatile and are ill-suited as a medium of exchange. There is a vast demand for stablecoins and they will become one of the significant drivers in blockchain adoption this year.

As their names suggest, stablecoins require mechanisms to absorb price volatility when their demand fluctuates in a short window of time to consistently maintain a stable price.