Guide · June 2026
What is a stablecoin?
A stablecoin is a cryptocurrency that tries to hold a steady value — typically pegged 1:1 to a currency like the dollar or euro. It gives you a price-stable unit on the blockchain, without the large swings of an asset like Bitcoin. This guide explains the types, uses and risks. It is educational, not investment advice.
What is a stablecoin?
A stablecoin is a crypto asset designed to hold a steady value by tracking a reference — most often a fiat currency such as USD or EUR. Where Bitcoin moves freely, a stablecoin aims for 1 unit = 1 dollar (or euro).
The stability typically comes from reserves: the issuer holds assets (cash and short-term government bonds) matching the tokens issued. Examples include USDC (USD) and Aryze eEUR (EUR).
Types of stablecoin
The most common are fiat-backed stablecoins, where each token is covered 1:1 by reserves in a currency. There are also crypto-collateralised and algorithmic variants, but those are more complex and historically more risky.
Under the EU’s MiCA, fiat-pegged stablecoins are regulated as "e-money tokens" (EMTs) with reserve and issuer-authorisation requirements. That is a meaningful difference from unregulated tokens.
What are stablecoins used for?
Stablecoins are used to "park" value between trades without going back to a bank account, to move value quickly on the blockchain, and as a price-stable unit for trading and settlement.
On Penning you can, for example, swap from a volatile asset into a stablecoin like USDC or eEUR. See the supported assets if you want to know what’s available.
Risks: stable does not mean risk-free
A stablecoin is only as stable as the reserves and issuer behind it. The peg can, in rare cases, break, and a stablecoin is not a bank deposit — it is not covered by a deposit guarantee.
Check who issues a stablecoin and whether reserve attestations are published. Also remember that gains and losses on stablecoins can be taxable in Denmark.
Frequently asked questions
This guide is educational and not investment advice. Stablecoins carry issuer and peg risk and are not covered by a deposit guarantee.
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