A stablecoin is a digital asset designed to maintain a steady value by pegging its price to another asset, most commonly a fiat currency like the U.S. dollar. Stablecoin reserve requirements are the rules determining the assets an issuer must hold to back up every stablecoin it puts into circulation. Major jurisdictions have established stablecoin reserve requirements. These reserves are meant to protect holders and ensure the stablecoin maintains its peg.
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