President Donald Trump’s crypto portfolio continues to grow. His crypto project World Liberty Financial has launched a stablecoin, or a token pegged to a fiat currency like the U.S. dollar, according to Bitcoin or Ethereum can soar or plummet 10% in hours. As their name implies, stablecoins are designed not to fluctuate. This is achieved by creating a reserve, typically in cash or Treasury bills, that back the stablecoin on a one-to-one basis.
Stablecoins can serve as a cash equivalent, and are especially popular with traders because they provide a shelter from volatility. They don't require investors to go from crypto to fiat currency. The two largest stablecoins are USDT and USDC, which have market capitalizations of about $143 billion and $60 billion, respectively.
