Investing & Digital AssetsInvesting & Digital Assets GlossaryPart 4 of 4
Stablecoins Glossary
6 terms from the Investing & Digital Assets book's Stablecoins part, each defined in a line and linked to the chapter that explains it.
- Burn: destroying stablecoin tokens on redemption, reducing the issuer's outstanding supply and liability (The Investing & Digital Assets Business).
- CCTP (Cross-Chain Transfer Protocol): Circle's burn-and-mint protocol for moving USDC between chains without liquidity pools (The Investing & Digital Assets Business).
- Mint: creating stablecoin tokens against dollars received, increasing the issuer's outstanding supply and liability (The Investing & Digital Assets Business).
- Minter allowance: the cap on how many tokens a minter role may create, reduced by each mint and not restored by burning, so a compromised minter key is bounded (The Investing & Digital Assets Business).
- Payment stablecoin reserve: the assets backing a payment stablecoin at least one to one under the GENIUS Act: currency, Fed balances, insured deposits, Treasuries of 93 days or less, overnight repo and government money market funds (The Investing & Digital Assets Business).
- Redemption: exchanging stablecoins for dollars with the issuer at par; two business days is the OCC's standard for timely redemption (The Investing & Digital Assets Business).