What Is a Stablecoin and How Is It Used in Cash Settlement?

A stablecoin is a type of cryptocurrency designed to have a stable value, typically pegged to a fiat currency like the US Dollar (e.g. USDT, USDC).

In cash settlement, stablecoins are often used as the medium of exchange to pay out the profits or collect the losses. This allows for quick, on-chain settlement without the volatility of other cryptocurrencies or the slower process of fiat transfers.