MARCO MANOPPO is research director at Digital Asset Research in New York, NY. marco.manoppo @digitalassetresearch. com KEY FINDINGS * Stablecoins have been a rapidly growing part of the digital asset ecosystem categorized into three subsectors in the DAR Industry Taxonomy Stable & Fiat Backed sector: Fiat Collateralized Stablecoins, Crypto Collateralized Stablecoins, and Algorithmic Non-Collateralized Stablecoins. * Tether (USDT) is the most utilized stablecoin with a market capitalization of over $30 billion. * Dai (DAI), the most utilized crypto-collateralized stablecoin, continues to gain popularity. * Regulators and Central Banks around the world are paying closer attention to stablecoins. * A number of Central Banks are launching or considering sponsoring a Central Bank Digital Currency (CBDC). ABSTRACT This article highlights growth and public initiatives related to digital assets, blockchain, and distributed ledger technologies (DLT) in the stablecoin sector. Stablecoins have been a rapidly growing part of the digital asset ecosystem categorized into three subsectors in the DAR Industry Taxonomy Stable & Fiat Backed sector: Fiat Collateralized Stablecoins, Crypto Collateralized Stablecoins, and Algorithmic Non-Collateralized Stablecoins. STABLECOIN DEFINITION A stablecoin is a digital asset that attempts to peg its value to a target price in order to achieve price stability. Stablecoin demand comes primarily from digital asset traders and investors who seek to maintain volatility-resistant stable valuations while replicating the instant processing and settlement abilities of cryptocurrencies. 76 | A Stablecoin Ecosystem Primer