Glossary · Stablecoins
Redemption
Also: redeem, redemption right
Redemption is the right to exchange a stablecoin with its issuer for the underlying asset at par, and the practical accessibility of that right is what separates a peg that holds under stress from one that does not.
Related terms
- Peg
- A peg is the fixed exchange rate a stablecoin aims to hold against its reference asset, maintained in practice by arbitrageurs who mint or redeem whenever the market price drifts from it.
- Depeg
- A depeg is a sustained deviation of a stablecoin's market price from its target value, usually triggered by doubt about the reserves behind it or by redemption becoming slow, restricted or impossible.
- Attestation
- An attestation is an accountant's report confirming that a stablecoin issuer held stated reserves at a stated moment, a narrower assurance than a full audit because it verifies a snapshot rather than the issuer's controls over time.
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