The resiliency of stablecoins and whether or not they’re backed by a dependable pile of cash is a contentious one within the cryptocurrency business. Stablecoins are supposed to carefully monitor the worth of one thing else, typically the U.S. greenback. So if traders have put, say, $10 billion right into a stablecoin, there ought to, in idea, be $10 billion sitting someplace to again it up. The biggest stablecoin, Tether’s USDT, has been dogged for years by concern that it has not been absolutely backed. In 2021, Tether was pressured to pay $18.5 million in penalties after New York state discovered that it had falsely claimed that its stablecoin was absolutely backed 1-to-1 by U.S. {dollars}.