Fully-backed stablecoins like USDC and USDT maintain their 1-to-1 peg with the US Dollar through reserves. For every one stablecoin token in circulation, the issuer holds one US Dollar or an equivalent cash-like asset in a segregated bank account. This full backing is what gives the stablecoin its value and stability.
How do stablecoins like USDC and USDT maintain their value?
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