# 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](https://www.syntaqx.com/books/investing-and-digital-assets/investing-business#the-life-of-a-stablecoin-dollar)).
- **CCTP (Cross-Chain Transfer Protocol):** Circle's burn-and-mint protocol for moving USDC between chains without liquidity pools ([The Investing & Digital Assets Business](https://www.syntaqx.com/books/investing-and-digital-assets/investing-business#the-life-of-a-stablecoin-dollar)).
- **Mint:** creating stablecoin tokens against dollars received, increasing the issuer's outstanding supply and liability ([The Investing & Digital Assets Business](https://www.syntaqx.com/books/investing-and-digital-assets/investing-business#the-life-of-a-stablecoin-dollar)).
- **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](https://www.syntaqx.com/books/investing-and-digital-assets/investing-business#the-life-of-a-stablecoin-dollar)).
- **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](https://www.syntaqx.com/books/investing-and-digital-assets/investing-business#the-life-of-a-stablecoin-dollar)).
- **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](https://www.syntaqx.com/books/investing-and-digital-assets/investing-business#the-life-of-a-stablecoin-dollar)).

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