Why are stablecoins important?
The main importance of stablecoins is that they provide ease to the average investor who wants to buy or sell cryptocurrency. If there was no concept of stablecoin, users would have hesitated to hold a volatile asset like BTC or ETH to trade with other cryptocurrencies. 
Stablecons also opened new doors of financial freedom, a major example of this being decentralized finance, which is now being compared to traditional real-world finance. Finally, stablecoins offer stability to users who are located in countries where their local currencies are not that stable which then saves them from potential losses due to significant price fluctuations.
Regulation and future of stablecoins
Stablecoins have truly made a big impact in regulated finance, a big example of which is the upcoming central bank digital currencies (CBDCs). However, despite this big revelation in the world of stablecoins, it is still an evolving landscape. Regulation, a clear framework, and increased collaborations are required to make stablecoins a common name in the traditional finance sector. 
At present, the future of stablecoins seems bright, and 2025 may as well prove to be a groundbreaking year for them, thanks to many regulations about stablecoins being introduced across the European Union.

Trust & Public Image
The success of a stablecoin is often dependent on the public interest and adoption in the long run. If the marketing or brand image of a stablecoin deteriorates, so does the stablecoin in the long run. 
The stablecoin risks above highlight the importance of understanding stablecoins before you think about investing in them.
What are stablecoins used for?
Since the launch of Bitcoin in January 2009, the space of cryptocurrencies went from skepticism to mainstream adoption. A similar case is being seen in the case of stablecoins as more and more institutions launch their native stablecoin, and at the same time, investors are showing interest in them as well. 
Stablecoins serve as an ideal base currency that you can use to buy, sell, transfer, and receive payments on the blockchain. A good example of this is Tether (USDT) which is widely popular among crypto users to trade on centralized and decentralized exchanges.
Companies are also using stablecoins to pay salaries, while large organizations are using them as collateral to borrow other crypto assets, a great example of which is decentralized finance (DeFi). The whole concept of DeFi means that companies provide a stable asset, i.e. stablecoin, to users on which they can earn interest over time. In return, users stake their crypto/fiat assets on the company’s platform.

What are the risks of stablecoins? 
Some people may argue that the risks of stablecoins may outweigh their main advantage and use case, which is stablecoin’s price stability, and they might have a case. Let’s learn what the potential risks associated with stablecoins:
Reserves/Collateral Shortage
The value of stablecoins is directly dependent on the issuer maintaining a stable amount of reserves. In case of mismanagement, which comes from a lack of transparency, investors may lose confidence, and depegging can be the end result.
Liquidity Redemption
Redeeming your stablecoins for the expected 1:1 value is a big challenge when markets aren’t stable which can lead to potential losses due to price fluctuations.
Algorithmic Stability
Complex mechanisms are in place to run the entire process that maintains the peg of algorithmic stablecoins. In case of poor design or failure of these mechanisms, stablecoins can depend significantly, as we witnessed in the case of Terra.

How do stablecoins work? 
To understand how stablecoins work, you must understand the sole mission towards which they thrive, and that is price stability under all market conditions. That’s a tough job in a bear market as the assets or investors backing the stablecoins significantly fall in bearish market sentiments. But this is just the tip of the iceberg, things are a little more complex than just reserves of assets and market conditions. 
Almost all stablecoins try to maintain a value of $1 at all times. For each stablecoin, a similar net worth of asset has to back it, ideally 1 US dollar, which allows users to exchange stablecoins for their pegged value at a 1:1 ratio. 
Stablecoins can be backed by fiat currencies like the dollar or euro, or like Maker Protocol’s Dai token, they can be backed by cryptocurrencies, which require users to stake their crypto in smart contracts. Dai is collateralized by mainly using ETH to buy the dollar-equivalent amount of DAI on an exchange or staking ETH into Maker Protocol smart contracts and being issued with DAI in exchange. The Maker protocol adjusts the collateral ratio in the smart contracts as per market demand and tracks the value of the US dollar at almost 1:1.

What are stablecoins?
As the name suggests, stablecoins are a type of cryptocurrency that has a stable value as they are pegged to a reserve of assets, which can be traditional assets like gold or silver or major cryptocurrencies like Bitcoin btc0.43%Bitcoin or Ethereum eth-1%Ethereum. 
At the time of writing, the stablecoins market cap in the crypto world has gone up from $83 billion last year to $173 billion in 2024. This indicates an increasing level of acceptance when it comes to stablecoins despite the stablecoin industry battling with problems of depegging and liquidity now and then.

Types of stablecoins
There are many stablecoins in the crypto market, but here we will list the top three types of stablecoins by market cap.
Tether (USDT)
Tether is a stablecoin that is directly pegged to the US dollar. It is currently the most popular stablecoin with the largest market capitalization, currently standing at 119 billion dollars.
USD Coin (USDC)
USDC survived a significant depegging in March 2023 and is still standing at a market capitalization of 35.57 billion dollars, making it the second-largest stablecoin in the crypto market.
Dai (DAI)
Dai is a stablecoin issued by the Maker Protocol. It is the third-largest stablecoin by market capitalization, currently standing at 5.87 billion dollars.

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Texas and its neighboring southeastern states are at the forefront of economic and population growth in the U.S., making them the optimal location for a new national securities exchange. James Lee, founder and CEO of TXSE Group Inc., opined: “We’re thrilled to bring to fruition the long-held vision for a national stock exchange in Texas.” The executive elaborated:
Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas.

The new Texas Stock Exchange’s impending debut aligns with shifting dynamics in the equity markets that are paving the way for increased competition and alignment. As corporate issuers and sponsors of ETPs call for enhanced stability and predictability in listing standards and costs, TXSE aims to broaden access to U.S. capital markets for all investors and improve market accessibility for public companies and entities seeking public capital.
“With approximately $120 million of capital raised, TXSE is expected to be the most well-capitalized exchange entrant to file a registration with the U.S. Securities and Exchange Commission,” the announcement adds, noting that the exchange plans to submit a registration with the SEC as a national securities exchange later this year. “TXSE will be a fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission,” the company clarified.

Texas Stock Exchange Backed by Blackrock, Citadel Securities
TXSE Group Inc. announced on Wednesday that it is launching the Texas Stock Exchange (TXSE) in Dallas, supported by leading financial institutions. The company “successfully completed its initial capital raise with participation from more than two dozen investors, including some of the largest financial institutions and liquidity providers in the world, such as Blackrock and Citadel Securities, as well as prominent business leaders from around the country,” the announcement explains, adding:
TXSE will focus on enabling U.S. and global companies to access U.S. equity capital markets and will provide a venue to trade and list public companies and the growing universe of exchange-traded products.

Backed by major financial institutions like Blackrock and Citadel Securities, TXSE Group Inc. has announced its plan to launch the Texas Stock Exchange (TXSE) in Dallas. This new exchange will provide a platform to trade and list public companies and exchange-traded products. With a capital raise of approximately $120 million, TXSE stated that it is poised to become a major player in U.S. equity markets, promoting enhanced competition and accessibility.

How Do Crypto Savings Accounts Compare to Traditional Bank Accounts?
Traditional and crypto-backed savings accounts have quite a bit in common. Both require you to deposit funds, and both pay interest based on the amount of currency you’ve deposited. You also have the ability to deposit or withdraw funds for each type of account, though some of the rules relating to that access can vary.
One of the major differences between the two kinds of savings accounts — and the driving force behind much of the interest in crypto-backed variety — is the interest rate. The average interest rate on a traditional savings account is just 0.06%. Even with high-yield savings accounts, interest rates still often fall below 1%, barring a few outliers.
Crypto savings accounts provide far better yields. While the amount can vary depending on the provider, timing and the digital currency involved, you may find some cryptocurrency-based accounts offering double-digit returns.
When it comes to withdrawing funds, traditional savings accounts usually let you withdraw what you’ve deposited at any time, as long as you make no more than six withdrawals monthly. With crypto-backed accounts, the rules vary between providers. Some may prevent you from withdrawing the cryptocurrency for a certain length of time after depositing it. You may also encounter withdrawal fees, something you don’t see with traditional accounts in most cases.
Another big difference involves federal account protection. Traditional bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC), an agency that protects accountholders and ensures they can recoup money they’ve deposited — up to a limit of $250,000 — if the bank somehow fails. The same goes for credit union savings accounts through National Credit Union Administration (NCUA) insurance.
With cryptocurrency savings accounts, there’s no guarantee that any kind of insurance is in place. If the provider or platform fails and you’re cut off from access to the wallet holding your deposits, you might never be able to recover that digital currency.

What Are Crypto Savings Accounts, and How Do They Work?
On the surface, crypto savings accounts work like traditional savings accounts — they’re financial accounts that you deposit cryptocurrency into so you can begin earning interest on its value. You deposit whatever amount of cryptocurrency you’d like; whether you choose to deposit some or all of your holdings is up to you. You simply use crypto instead of a fiat currency, like dollars, to fund this type of account.
Functionally speaking, cryptocurrency savings accounts are pretty straightforward. Once you open an account with a provider, you’ll deposit your desired amount of cryptocurrency by sending it to a new crypto wallet that’s associated with your account. Once there, other platforms can borrow those crypto assets. Whenever those digital coins are borrowed, you earn interest.
The amount of interest you’ll earn is determined before other platforms borrow your crypto, giving you clear insights into the earning potential of your digital currency. However, the interest rates can change over time, meaning they can fluctuate in response to financial market conditions or adjust based on other factors. For example, when demand for cryptocurrency is high, interest rates typically rise. When demand declines, interest rates fall.
While market conditions play a big role in the equation, other elements also come into play. For instance, the provider you select matters, as some offer more competitive interest rates than others. Additionally, like all financial accounts, you could encounter savings platforms that charge fees or have other costs associated with the service, even though not all do.
It’s also important to note that the type of currency you receive as your interest payments may vary. The same goes for interest schedules, with some platforms paying interest out on a daily basis and others making monthly payments. Whether or not the interest is compounding may also change depending on the provider platform.

Be Careful With Who You Trust
Whether you’re a Binance user or a blockchain startup founder, vigilance is the most powerful weapon. Criminals don’t need advanced technical skills to steal your funds — all it takes is making you believe them. 
If you receive an email from someone claiming to be “Binance staff,” take note of the wording. Spoofed messages often contain subtle mistakes such as spelling, odd syntax, jarring phrases, and misspelled domain names. 
Scammers often spur their victims into action by creating a false sense of urgency. For example, the scam email might say: 
“Your Binance account will expire in a week. To avoid loss of funds, please move your assets into this secure wallet address.”
Users should always be suspicious of messages asking to transfer money or share sensitive information such as personal details or passwords. For more tips on safeguarding your Binance account, users can refer to our complete security guide.

The first line of defense, however, is always the users themselves. As a member of the crypto community, it’s imperative that you:
Be vigilant and always take proactive steps to ensure you don’t fall prey to scams and impersonations.
Use the Binance Verify tool to check whether the account officially represents Binance. Please note that Binance Verify is not foolproof. For example, a scammer can spoof their “from” email address or hide behind the real name of a Binance employee. In both cases, Binance Verify would produce mixed results. 
Report any suspicious activities or accounts to Binance Support