It’s the Holy Grail of cryptocurrencies — an asset with all the benefits of decentralization but none of the volatility.
Tether, which claims to be pegged one-to-one to the dollar, is the most prominent among so-called stable coins. It’s also the most controversial, with U.S. regulators and investors trying to sort out whether it’s a scam.
Even with Tether under a cloud, demand is rising for tokens seeking to dull price swings and increase the use of virtual money.
“Stable coins are potentially the key to unlocking widespread adoption of cryptos,” said Rafael Cosman, the 24-year-old co-founder of San Francisco-based TrustToken, which issued a token named TrueUSD last month.