Digital tokens designed to maintain a stable value relative to a specific fiat currency.
Fiat crypto tokens are a type of cryptocurrency whose value is intended to be fixed or closely track a specific fiat currency, such as the US dollar or Euro. These tokens are typically backed by reserves of the underlying fiat currency held by the issuer, or by other high-quality liquid assets. The goal is to combine the benefits of cryptocurrencies, like decentralization and rapid transferability, with the price stability of traditional currencies.