Can a Stablecoin Be Used as the Underlying Asset for a Tokenized Option?
Yes, a stablecoin can be the underlying asset for a tokenized option, although it is uncommon. Such an option would allow a buyer to hedge against the risk of a "de-peg" (the stablecoin losing its value peg).
For example, a put option on a stablecoin would profit if the stablecoin's value dropped significantly below $1.
