What about stable coins backed by real assets?

Seeing the Terra blow-up, and thinking about the lack of interest in asset-backed digital currencies among main-stream crypto investors convinced me to write [THIS]( today.

TL/DR: if you want to step out of the market for a bit while things settle down, and you don’t want to sit in cash (inflation) or a stablecoin that might not handle a big down-draw, then why not move to something backed by real, tangible assets until it’s time to dip your toes back in the water?

The argument makes a ton of sense to me, but I came to crypto from being a long-time gold and silver stacker, and it took an asset-backed token to get me to really start to learn about crypto.

Do y’all see things the same – basically that there’s a role for tokens that are low volatility that are tied to real things other than currencies? If not, what am I missing from the mainstream crypto-investor’s perspective?

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17 thoughts on “What about stable coins backed by real assets?”

  1. Engineer here! I’m about to bring out a stablecoin that is pegged to an open bag of frozen peas in my freezer! It’s called USPP! Supply limited to 2568!

  2. I saw Tether’s web site says “100% backed and fully transparent”, and some guy from the Cayman Islands signed off on an attestation, so *of course* you can let your life savings sit in USDT and have peace of mind. Not one of those “algorithmic stablecoins” so nothing to worry about there!

  3. Like potatoes.

    Everyone loves to eat potatoes. It’s one of the most versatile food item out there. It single-handed brought down a nation and permanently changed the nation’s demographic, political, and cultural landscape.

    I think it’s about time it got its due.

    I am off to grow some potatoes. Who’s with me?

  4. What real assets? What is real?

    It all involves trust and the only thing that creates trust is the blockchain.

    I would rather have keys to coins on the blockchain than a paper that says “you own 1 oz of gold”.

  5. Makes sense; put the stable back into stable coin.

    Crypto totally acts like a risk on asset which by definition is useless in this current climate. I don’t trust any of the fiat stable coins like Tether because I want to be able to trade out even when everyone is headed for the exits seeking dollars. Liken it to a bank run…or a stable coin run.

    I like the guard rails of holding allocated gold to support a stable coin; more difficult to fractionalize and place holders at risk by shady management. Also like the yield that Kinesis provides as well!

  6. 1. How do you know the exchange the coin is native to will be honest about having all the backing assets.

    2. How will that guarantee price stabilization as like stocks, crypto price is determined by buying and selling pressure? Actual valuation doesn’t always come into play.


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