Written by Pablo Gómez
Founder & CEO at Metlabs · Reviewed on October 11, 2026
Fiat-backed stablecoins maintain reserves off-chain. Crypto-backed designs use collateral and liquidation mechanisms. Algorithmic designs attempt to stabilize prices through supply rules and incentives. None of these mechanisms makes the target a universal guarantee of market price.
EU MiCA distinguishes EMTs, which reference one official currency, from ARTs, which reference another value or right or a combination of them. EMT redemption is at par; ART redemption follows different rules linked to referenced assets. A legal category cannot be established simply because a product is marketed as a stablecoin.
Stablecoins serve as settlement assets in payments and DeFi protocols. Market price, reserve value and the redemption claim against an issuer are distinct. Solvency, reserve liquidity, custody and contract permissions create different risks.
Also known as
- Stablecoins
