# Stablecoin

A stablecoin is a blockchain token designed to hold a stable value against a reference asset, usually a fiat currency, backed by reserves and redeemable at par. Stablecoins are one of the three digital asset use cases banks address, alongside cryptocurrencies and tokenized assets.

## What banks need to issue or hold stablecoins

Issuers need a tokenization engine with mint, burn, freeze, and compliance controls under quorum governance, plus reserve management and reporting. Holders need custody that treats stablecoins as first-class assets with the same governance as any other position.

Taurus supports stablecoin issuance through Taurus-CAPITAL and custody through Taurus-PROTECT, one platform covering cryptocurrencies, tokenized assets, and stablecoins.

FAQ:

- How do stablecoins differ from tokenized deposits? A stablecoin is typically a bearer-style claim on an issuer backed by reserves, transferable to anyone the compliance rules allow. A tokenized deposit stays a commercial bank deposit on the issuing bank's balance sheet, held by that bank's customers.

Related: https://www.taurushq.com/glossary/tokenized-deposit/ https://www.taurushq.com/capital/ https://www.taurushq.com/glossary/tokenization/

Learn more: https://www.taurushq.com/glossary/stablecoin/