Short answer

The well-established ones are widely trusted and hold their dollar value in normal conditions. The key thing to understand is that a stablecoin is backed by a company's reserves, not by federal deposit insurance. Sticking to reputable, audited coins and settling to dollars if you prefer keeps the risk low.

What to look for

  • A well-known issuer with published, audited reserves (USDC is the common US choice).
  • Broad support from wallets and processors.
  • The option to settle to dollars if you do not want to hold the coin.
Go deeper

Our stablecoins for merchants pillar covers the tradeoffs in full.

Common misconceptions

  • That a stablecoin is insured like a bank deposit. It is backed by reserves, not insurance.

Things to avoid

  • Accepting a little-known stablecoin with unclear backing.